STRIKING RECOVERY IN U.K. CONSUMPTION OF WOOL

Press, Volume XCVIII, Issue 28952, 21 July 1959, Page 7

STRIKING RECOVERY IN U.K. CONSUMPTION OF WOOL

For all practical purposes, wool consumption in the United Kingdom has fully rec.overed from the temporary set-back which marked the later months of 1957 and most of 1958, and is how back to one of the highest levels of the last few years, reports the New Zealand Wool Board’s Bradford correspondent. This encouraging news is afforded by the most recent official statistics collected in Bradford. They show that, in May, 1959, the rate of wool consumption throughout the country was 23 per cent, higher than in May last year, while the rate of top production was more than 25 per cent higher than a year ago, and exceeded by two per cent, the previous post-war record set up in May, 1957. Worsted yarn deliveries were at a rate 22 per cent, higher than a year ago, and wool cloth deliveries 16 per cent, higher. These are extremely gratifying figures. It must be remembered that they represent recovery from earlier sub-normal production, and not an advance on a previously existing good level. If the percentage increases seem large, it should be borne in mind, too that May lait year saw approximately the lowest point of the temporary recession, so that the comparisons reflect the full extent of the variation in the levels of production over this difficult period. They show in most convincing fashion, however, that the country which uses more wool than any other, has in recent months regained very rapidly the ground lost during the difficult 1957-58 period and is now using wool again at one of the highest rates since the war. Expansionist Movement It seems important to add that there is no “boom” talk In Britain today. It now seems clear that the recent set-back in world wool usage was due, in large part at any rate, to earlier over-production of wool goods which temporarily choked the channels of supply and these have had to be cleared before further headway could be made. In the process, wool textile production in practically every country temporarily reverted to a lower level, but the world is now witnessing the return of an expansionist movement in wool usage. Stocks of wool products lately liquidated by the distributive and retail trades are now being replaced and mill production in many countries is at a better level than for some time. The last few months have seen a re-birth of confidence in the general structure of wool values, and the trade situation not only in Britain but in various other countries—including the United States of America—is pow regarded as basically more healthy than for , some time past. Seasonal Considerations ! It should, perhaps, be added that the May figures for ' the United Kingdom have an unusually favourable appearance because of certain seasonal considerations. May is the time of year when mills are building up their working stocks of processed wool, such as tops and yarns, in readiness for the-Northern Hemisphere summer holiday season when—because of the spread of holidays over different manufacturing centres —some mills may be working at a time when combing and spinning mills in other districts are closed for annual holidays

In preparation for such a time, certain stocks of goods are taken in a little ahead of the time of requirement, and May normally reflects a spurt in production to that end. It will therefore be a matter for satisfaction if the current rate of wool consumption can be maintained in the weeks immediately ahead. There will be no occasion for concern if it should fail to do so by a narrow margin as world wool usage—throughout Northern Hemisphere countries in any case—is expected to show a seasonal decline in the third quarter of the year. American Position The United States will need to increase its monthly imports of appare) wool by 54 per centover the recent rate, if the Janu-ary-April supply-demand positions should prevail for the remainder of 1959, says the New Zealand Wool Board’s New York correspondent. These conditions would require additional imports of 128.4 m lb of appare] wool from 4ay to December. The total volume of apparel wool imports during the January-April period was 41.5 m lb, clean basis.