TRADE AND INDUSTRY

Evening Post, Volume CXXII, Issue 154, 28 December 1936, Page 10

TRADE AND INDUSTRY

PROMISING OUTLOOK

CONDITIONED BY POLITICS

{By Telegraph—Press Assn.—Copyright.) (Received December 28, 11.30 a.m.) LONDON, December 27:----"The Economist's" survey of the state of trade in Great Britain shows that the seasonal expansion in business activity continued, though less noticeable than it was a month ago. Progress is retarded, however, by the inability of many industries to meet the demand. The metal industries are working at capacity and some capital equipment trades are unable to satisfy even the home market's requirements. PURCHASING POWER RISES. The purchasing power of the population is steadily rising with the increased employment and higher wages and dividends. The demand for food and clothing and for automobiles and other goods is consequently increasing. The happiest feature of the closing months of the year have been the increase in the trade between the primary producing and the industrial countries. The outlook for 1937 in both Great Britain and elsewhere is promising, in the absence1 .of any unfavourable political developments. There has naturally been more buying of Christmas presents than of stocks and shares. Nevertheless, investment markets are firm, with the exception of European bonds, especially German, which are affected by the news of the desperate economic plight of the country. INVESTMENTS APPRECIATE. Few investors on looking backwards have cause to regret. Industrial shares have appreciated during the year at around 11 per cent. Specula^ tive issues have risen 25 per cent. Many individual issues have doubled, and even trebled in value. The "Investors' Chronicle" considers that the situation does not show unhealthy signs, although. England is now entering its fourth year of recovery. The cost of living has risen, but there are no signs of wages chasing prices and prices chasing wages. Base metals last week were active.