BUSINESS CONDITIONS

Nelson Evening Mail, Volume LXX, 21 December 1936, Page 7

BUSINESS CONDITIONS

TREND IN OCTOBER EASIER CREDIT FACILITIES IMPROVED FARMING OUTLOOK External trade fell off in volumG and value from the abnormally high off-sea-son level recorded in September, states the Abstract of Statistics in its review of business conditions in the Dominion in October. Exports, it is stated, fell considerably while imports declined to a lesser extent. Consequently an excess of imports emerged. The review points out that October is the low point of the export season so that the state of external trade in that month is of purely shortterm significance and by no means typical of the future trend. The volume of cheque transactions Was exceptionally large for ah October month, pointing to substantial internal business activity. The average net note-circulation for the month was at a record figure. INCREASE IN ADVANCES Banking statistics showed evidence of a loosoning-up of credit facilities, the ratio of advances to deposits rising to 75.96, the highest figure for 11 months. The movement may be due in part to purely seasonal influences, an excess of imports being shown for the third month in succession, as is normal at this time of the year. The overseas funds of banks fell somewhat in sympathy with the trade situation. Unemployment again declined. the number of unemployed males falling for the fourth month in succession. The total on 24th October was 46,140, as compared with 49,419 on 26th September and 58,481 at the end of October, 1935. THE FUTURE TREND Pointing out that the trend of trade and business commented upon relates to th 3 shcrt-term period in an off-sea sou period, the review adds that the indications as to the probable state of business in the flush of the production season now approaching are of more real significance It plates that the weather during October was, on the whole, favourable to farm production. The prospects in overseas markets for New Zealand produce have improved in keeping with the continued buoyancy in economic conditions overseas, notably in the Unitod Kingdom. While the quantum of world trade ap a whole shows only a comparatively slight revival, there is ample evidence of. a world-wide improvement in the situation in respect of the demand for products of the soil. In particular, the wool situation at present is exceptionally favourable to producers.