STRAWS IN THE WIND

Dominion, Volume 27, Issue 34, 3 November 1933, Page 13

STRAWS IN THE WIND

Signs from Abstract of Statistics

IMPROVED BUSINESS TONE A perceptibly improved tone in the general business outlook for the mouth of October is reported in the current number of the Abstract of Statistics. Among the factors cited in favour of such an impression are the volume of bank debits p!a,ced to individual customers’ accounts, which is a fair index of business turnover or internal trade, shows an appreciable improvement upon the position extant twelve month#, :i<*o, and, in addition, indicates a slight advance over the volume recorded for August, In recent preceding years September has shown a tendency to drop to the lowest point for the year.. “Imports for the months increased in total value, and this suggests an awakening of one side of trading enterprise, as for a considerable time imports have been abnormally restricted.” the review continues. “Sales tax receipts during September also show a definite upward movement, ... “The recent London wool-sales, now concluded, have maintained a steady improveiiient, with good clearances and firming prices, in contrast to the fluctuating tendency of earlier sales. The position as regards butter and cheese may not be quite so favourable. For butter a sharp rise was experienced, followed by a Lesser fall, but latest advices suggest a steady market. Cheese has been steadier all through' the month. Dairy production is now proceeding apace, and the first two months of the new season have witnessed record outputs of both butter and cheese More Building Activity, “The building industry continues .to show increased activity. Although the Unemployment Board’s subsidy ceased during the month, the effect of the stimulus given to the building industry will continue to show for some months, as the subsidies granted are taken up. “Railway passenger traffic is being well maintained, and although goods traffic seems to be losing some ground, the general position of the railways is sound, as is evidenced by increasing revenue and decreasing expenditure," both for the month under review as compared with September, 1932, and for the expired portion of the present financial year as compared with last. “Tourist, traffic appears td be making an early start, and in increasing numbers. while several extensive, tours of visiting overseas and intercolonial libers are already projected. “Factors not so favourable in the month’s review arq as follow: No substantial enterprise or confidence has yet appeared, as witness the comparatively stationary position of the volume of advances and the Increasing volume of deposits, entirely consisting of fixed deposits. Indeed, the volume of free deposits continues to .decline, bringing the ration of free, to fixed deposits for the month down to 46.03 per cent., as compared with 47.25 per cent, for the previous month, 4 Shipping Trade Dull. “Financial circles, /as illustrated by the statistics of land transfers and mortgages, experienced a fairly lean mouth during September, Shipping circles,, too, were dull, as a. result of the comparative slackness in the export trade. The outlook for frozen meat on the Home market was not bright, prices for Dominion products being largely affected by the sustained competition of Home-killed meat, and the continuance of hot weather affecting consumption generally. “Items in the month's review of general interest and portent contain the following: The balance of trade for the month was against the Dominion to the extent of £282,000 sterling, or £352.000 New Zealand currency, Septembei'. of course, is usually a slack month for exports. For the cumulative period of nine months, however, there is an excess of exports to the approximate value of £10,000,000 sterling, or £12,500,000 New Zealand currency. “While business, still continues upon greatly restricted lines, the business community generally appears to be adjusting itself to the conditions, as is suggested by the greatly reduced number of bankruptcies and private assignments registered during the expired portion of the present year.”