BUSINESS OUTLOOK

Manawatu Standard, Volume LVI, Issue 190, 13 July 1936, Page 2

BUSINESS OUTLOOK

SALES TAX INCREASE. BUILDING ACTIVITY. Reviewing business returns lor May, the Government Statistician observes that internal activity, gauged by the volume of cheque transactions and the active note circulation, was on a lower level than in April, but “substantially higher than in May during any oi the preceding years.” While the actual peak level for fixed deposits with the banks was passed two years ago, the trend of deposits on current account lias remained buoyant, partly a reflection of improving business activity, and partly as a result of the superabundance of banking funds.

The greatly-increased realisations at wool sales held during the season just passed have also contributed materially to the recent buoyancy of funds on current account. Some diminution may be expected during the next few months with the slackening of activity in the primary producing industries. While farm production was adversely affected by unseasonably wet conditions in the early months of the year, there has been good growth of pastures lately, while it is anticipated that supplies of fodder crops for supplementary winter feeding will be adequate. The orchard production season has, for the second year in succession, been an unsatisfactory one. Exports of apples during the live months ending in May totalled 39,505,0001 b, an increase on the total for those months of last year (33,600,0001 b), but a considerable decrease as compared with the position in the first five months of 1934, when 53,300,0001 b of apples were exported. Statistics of the number of sheep on April 30 show an increase of 962,379 in the Dominion’s flocks (3.31 pel cent.).

Statistics of building permits issued in the larger towns indicate a considerable increase in the building of dwellings; the number of permits issued during May for that purpose totalling 373,' the highest number in any month since November, 1929. During the past fne months 1408 permits fot the erection of dwellings have been issued, as compared with 1096 daring the same months of last year. Sales tax for May last showed nn increase of or 19.9 per cent, over May, 1935.

THE LABOUR MARKET. As is expected at this time of the year, the number of registered unemployed in May shows an increase as compared with the position a month previously, the figures being:—Mav 9, 35,270; and April 11, 33,277. The total a year previously (on May 11), 1935) was 38,100, so that the number this year was 2830, or 7.4 per cent, lower than the figure twelve months ago. “The year’s peak level in respect of registered unemployed was reached in August or September of 1933, 1934, and 1935,” remarks the Government Statistician, “but, with the placement of men on public works undertakings now commencing, and with the general improvement in business activity in occupations not subject to severe seasonal recessions, it is quite probable that the number of registered unemployed will not increase later in the year.” Public works employees in May last numbered 15,940 ns compared with 12,212 for May, 1935. May proved an exceedingly busy month in respect of land transfers registered, the number of transfers (2276) being the • highest since October, 1930, while the consideration (£1,648,461) was the highest recorded since December, 1930. Sheep returns are 30,039,133 (interim), against 29,070,754 (actual) for April 30, 1935. Increase, 3.31 per cent.