BUSINESS OUTLOOK

Greymouth Evening Star, 11 March 1932, Page 10

BUSINESS OUTLOOK

STATISTICIAN’S REVIEW. “The general business outlook is still hovering round the low level of activity established over a year ago,” states the “Monthly Abstract of Statistics,” in reviewing business statistics for the first month of the present year. “In some respects the prospects appear to be brightening perceptibly, although the future trend remains obscure. Banking statistics reveal a somewhat sounder position than twelve months ago, inasmuch as advances during the month diminished in volume, while deposits—particularly free deposits—nloved slightly upwards- , Thus a better relationship was established between advances find deposits a ini between free and fixed deposits- The volume of bank debits for the m°ntli compares very favourably with the experience of January, 1931, and, indeed', if all the depreciatory influences’ are taken into account, the figure probably represents a measure of business activity very little altered', if hot slightly improved. Financial circles, however, are definitely undergoing a perjod of intense slackness, which appears "on thei latest figures to be further accentuated. “The stimulus given to overseas trade last month" was not • continued during the month under review. Although the visible trade balance remains strongly in favour of the Dominion with a credit of over a million pounds (New Zealand currency), the total value of exports for the month records a heavy slackening-off from December, and also in comparison with a year ago. Imports, on the ether hand, increased since the previous month, although the total value therepf remains well below the figure for January', 19.31. Wool continues to go forward in substantially greater quantities tluin twelve months ago; cheese shpws ap unexpected demand from overseas markets-; but the remaining primary products appear to be mainly responsible for the decrease in the tptal value Qf exports for the month.

“The various London market reports presept a much brighter outlook- Demand for frozen meat continues steady. Wool prospects are improving, while a feature of tpe repent local sales has been the heavy demanfl for the finer varieties, crossbreds and coarser wools being a shade below previous realisationsThe new British tariff should stimulate demands for the Dominion’s produce in the near future.

“For the month under revievy, the dairy produce market reflected the reactio,n from the boom resulting from Great Britain going off the gold standard, but later reports indicate a resumption of the slowly advancing price level in accord with more normal influences- The dairying industry has passed the peak of the season, and consequently records a. falling-off in production. Exceptionally dry’conditions generally affected the milk yield of cows in many districts, but, in spite of this, the output of butter continues on a record level, although cheese is considerably below last year’s output for the month.”