IMPROVING OUTLOOK

Hawke's Bay Tribune, Volume XXII, Issue 257, 13 October 1932, Page 8

IMPROVING OUTLOOK

BETTER TONE IN AUCKLAND

PROMISING TRADE SIGNS.

COUNTRY BUSINESS SOUNDER.

Auckland, Oct. 12. The conviction that the approaching summer will see the last of the worst of the depression as far as New Zealand is concerned was expressed by a leading Auckland business man yesterday. This’ opinion was shared by a number of others representing widely varied interests, who agreed that what is spoken of as the “tone” of the market had definitely improved. People have become much more settled and cheerful jn their outlook than they were 12 months ago, and the very word depression is passing out of constant use.

Apart from the solid material facts on which the more hopeful outlook is based, the very fact that people generally are more optimistic is of the first significance. It is necessary for a brighter mental outlook to precede a return to happier material conditions. That brighter outlook is already here. And it has come not without reason. As might be expected it is first felt in the country. Those in close touch with conditions both in country and in town say that the town usually lags about six months behind the country in its response to trade movements. It was in the country that the pinch of the depression was first felt, and it is the country that is now feeling the first signs of the return to more normal times. MORE DAIRY PRODUCE. Coastal shipping, which ' handles a very large amount of the dairy produce of the province, is experiencing a very marked increase in the quantities of butter and che coming forward. This increase is ci. cited in comparison with last season, which showed a very substantial advance. As far as outward freight from the centres to outlying ports is concerned there is not the same increase in business to report, largely because the heavy transport of materials that used to be required by the Public Works Department has now fallen away to almost nothing. However, such activities as the revival of the flax industry in the Piako and the Paeroa districts are accepted as hopeful signs. The present month has started particularly well for coastal shipping. Business firms with large country connections unanimously report distinctly quickened activity in tneir country trade. The promising opening of the dairy season and the pay-out of the milk cheques have had their effect, and another circumstance of much importance to many farmers is that the effect of the reduced interest rate on mortgages is now for the first time beginning to be felt. The legislation took effect on April 1, and half-yearly payments are now all being made on the lower scale. BUILDING TRADE IMPROVES. Making a comparison between last month and September of last year the representative of a large hardware business said that the tone of trade had decidedly improved. People were more hopeful and orders were coming in bet-, ter. He had found signs of improvement in the building trade, and architects were speaking of a returning demand for their services. The better tone here is regarded by one man with large experience as largely a reflection of the improved conditions and returning confidence in England. People who were contemplating building, he said, were beginning to realise that now was the time to do it, as every month of delay must mean higher prices. A manager of a large retail house who reported marked improvement in country business said there was also a decided improvement in city trade as compared with last year. In his view the continuity of this improvement would undoubtedly depend on the international situation. >