BUSINESS ACTIVITY

Evening Post, Volume CXX, Issue 111, 6 November 1935, Page 11

BUSINESS ACTIVITY

SEPTEMBER HIGH LEVEL

AN OFFICIAL REVIEW

Judging by available statistical data, remarks the Government Statistician, business activity in September was at an unusually high level for a .month which is normally ohe of the slackest of the year. The average weekly value of bank debits —a reliable indicator of the state of internal tradeshows an increase of 5.6 per cent, over the corresponding figure for August, and of 20.8 per cent, on that recorded in September of last year. The statistics of building permits issued in the larger towns indicate a continued improvement in building activity, particularly in resp.ect of housebuilding. Trade statistics . reveal unusually high totals for a September month, I the value of exports being considerably higher than has been reached in that month .for .several years past. An important factor contributing to the relatively high level of export values was an unusually heavy shipment of wool for an off-season month. Imports were also higher than normal— for recent years—though somewhat below the exceptional figure recorded in August. Reference is also made to the consistently high index number of share prices throughout the expired nine months, being higher than that recorded in any similar period since 1929----but latterly there has been a slight reduction in this index.' INTEREST RATES. Reviewing the market for New Zealand Government Stock, the Government Statistician remarks that the" average yield on 4 per cent, (converted) New Zealand Government Stock at current market prices at the end of September was £3 15s per cent.- Th» low point so far recorded in the yield on this stock was reached in September of last year, in which month the average yield was £3 13s 4d. During the current financial year the average yield on this stock (at end of month quotations) has varied between £3 14s in July) and £3 15s (in September), so that it would appear that the fall in interest rates has been checked for the time being at least. Overseas market reports point to favourable prospects for the coming wool season, while the meat market remains stable. Latest cabled advices show some easing in butter prices from the relatively high levels—for recent years-^-recoraed a few weeks ago, but the statistical position is still sound stocks on hand in Great Britain being moderate in quantity. HIGH EXPORT TRADE. September is normally one of the slackest months of the year in respect of export trade; and, accordingly, it is not surprising to find that'the total value of exports in that month (£2,690,303) is the lowest figure so far recorded this year. This total is, however, exceptionally high for a September month, being the highest figure recorded in that month since 1020. Exports of wool Were unusually heavy for an off-season month, 25,950 bales being exported, of a total declared value of £299,161, as compared with 9539 bales valued at £144,145 in September, 1934. While the quantities of butter and cheese exported were slightly lower, than in August, the values'were'in- each case higher—a re-flection-of higher prices ruling on the London market. Although the value of imports has shown a fall of £452,888 as compared with the August total, the September figure (£3,169,053) is still considerably higher than normal, and has, in fact, been exceeded only four times (in August, 1934,' October, 1934, January, 1935, and August, 1935) since January, 1931. As a consequence of the unusual buoyancy in exports the excess of commodity imports (£478,750) is not as great as expected, having regard to the unusually high import value. The value of imports of merchandise in August exceeded that of commodity exports by £746.296, the September figure being £267,546 lower. The value of exports during the nine months ending in September- has exceeded that of commodity exports by £9,437,208. THE SALES TAX. Sales tax returns are described as buoyant during the calendar year, suggesting a greatly increased volume of wholesale transactions. The list of exempted commodities has been extended quite materially from time to time since the tax was first instituted, so that the volume of business must have increased to an even greater extent than is suggested by the tax receipts. Receipts during- (he nine months ending in September, 1935, were 13.74 per cent, higher than in that period of 1934. BUILDING ACTIVITY. Building activity continues to improve, judged by the statistics of building permits issued in the larger towns. The value represented by permits issued in September was £416,004, as compared with £391,505 in August. Permits issued in September for the erection of new dwellings numbered 312, an increase of 13 over the August total. A feature of the statistics of building permits in recent months has been the evidence thus disclosed of a sustained revival in housebuilding. Export prices for September show an increase of 31 points over those of August.