ECONOMIC TRENDS

Evening Star, Issue 23093, 20 October 1938, Page 10

ECONOMIC TRENDS

POSITION IN AUSTRALIA COMMONWEALTH BANK REVIEW In its latest statistical bulletin, the Commonwealth Bank reports that Australian export prices have been falling steadily recently, but the decline was checked in the week ending September 16. when the export price index (1927 equal 100) stood at 66.8 compared with 65.8 on September 8. This level, however, compares with an average of 69.7 in August and 91.6 on September 16, 1937. The decline during the month was concentrated mainly in wool and wheat, but wheat has recently shown some recovery. Butter and lamb, after a temporary improvement, declined, but the other items have maintained their improvement. Bank clearings for Australia, according to the bank’s compilation, amounted to £38,700,000 in August, compared with £45,600,000 in July and £38,900,000 in August, 1937. ‘ To September 20 rainfall has been light in most States, but following good rains in August the seasonal outlook is satisfactory, says the bank. Referring to conditions abroad, the bank declares the decline in industrial activity in the United Kingdom was checked in June, but there was no further improvement in July. The 1 Economist ’ index of business activity (1935 equals 100), which had arisen from 102 in May to 103 in June, fell to 102 in July. Unemployment figures improved again in August, but at 1,759,000 were 451,000 higher than in August last year. The number employed was 320,000 less than last year. The index of exports of British manufactures declined from 101 § in June to 93) in July. Operations in the building and public works contracting trades are well sustained. The outlook in the United States continues to improve, reports the bank. Steel production for the week ended September 24 was scheduled at 47) per cent, of capacity, the highest since November, 1937. Freight car loadings, automobile production, and lumber proauction have also increased, allowing for seasonal adjustment. During August there was an upward trend in loans to business.