DOMINION TRADE

Otago Daily Times, Issue 22212, 15 March 1934, Page 2

DOMINION TRADE

IMPROVEMENT NOTED UPWARD TREND CONTINUES Business statistics for the month of January indicate a definite improvement in economic conditions as compared with the position in January of the two previous years (says the Abstract of Statistics). , During the past few months a definite upward trend has developed in certain significant satistical indicators of the state of business—particularly in building activity and in export trade. This improvement has been well maintained during January; and, while conditions are still considerably below normal, it is evident that some progress has been made towards recovery. While the international trading outlook is still obscured by many disturbing and unsatisfactory features, it is encouraging to note that industrial activity in Great Britain continues to improve, despite unsettled conditions on the Continent. In Australia the progress toward more normal business activity has been hastened by the marked advance in wool prices. The reciprocal trade of New Zealand with Great Britain and Australia—a vital factor in the economic welfare of the Dominion—should benefit from the improvement in economic conditions in all three countries.

While the position of the butter and cheese markets still remains nncertaiu, some slight advances have been made during February from the low levels ruling during January. It is evident, also, that consumption has been stimulated by the low prices ruling in recent months.

A noteworthy feature of the trade statistics for January is the marked increase in the import total, which was £518,000 (in sterling) above the December figure, and £931,000 above the low level reached in July last year.

Activity in financial circles in the Dominion still remains at a relatively low level. Fixed deposits at banks of issue remain abnormally high; while again mortgages and land transfers registered during January reached extremely low levels. Funds held on current account by the banks »have. however, increased- materially during the past two months, the amount so held at the end of January (£21,552,446) being the highest figure recorded since July, 1930. Advances by the banks on January 22 totalled £41,722,416, the lowest figure recorded since the collection of weekly banking statistics was initiated in April, 1928. There is necessarily, of course, a considerable' lag in the adjustment of financial statistics to current economic conditions.

Exports (excluding specie) during the month of January were valued at £5,080,538 in New Zealand currency, equivalent to £4.064.000 in sterling, a marked increase over the totals recorded in the corresponding mouth of 1933 (£4,000,878 in New Zealand currency and £3,201,000 in sterling). Exports of wool during January totalled 109,171 bales, valued at £1,862,604. The influence of higher wool prices is shown in a greatly increased valuation of exports of this commodity, for in January, 1933, 120,015 bales exported were valued at £973,894. The recorded value of imports (excluding specie) during January was £2,331,215, equivalent to £2,287,000 on a sterling basis and £2,859,000 on a New Zealand currency basis. A marked recovery in imports has taken place within recent months, the January figure representing an increase of £931,000 in sterling over the low level recorded in July, 1933. Although the value of imports m January, 1934, was considerably below the normal monthly total in 1928, 1929 and 1930, it is the highest monthly figure recorded since January, 1931.