EXPORT TRADE BUOYANT

Southland Times, Issue 23998, 13 December 1939, Page 24

EXPORT TRADE BUOYANT

OCTOBER BUSINESS STATISTICS

ABNORMAL TRENDS IN BANKING The principal feature emerging from a study of recent statistics illustrating business conditions is the improvement in the external trading position compared with this period of 1938, says the Abstract of Statistics for November. Exports, which frequently reach their lowest level in October, were particularly buoyant for an October month, while imports have continued to fall. For the expired 10 months of the present year exports amounted to £51,342,327 and imports to £43,453,685, giving an export surplus of £7,888,462. In the same period of 1938 exports totalled £50,261,967 and imports £45,873,684, leaving an excess of exports of £4,388,283. Banking statistics, in the main, have continued the abnormal trends which have been in evidence during recent months. Deposits on current account with the trading banks showed an increase of £1,076,346 during the month, and are now 18.1 per cent, about the figure for October of lastyear, while bank, advances have fallen still further and are 7.2 per cent, below the average for October 1938.

PRIMARY PRODUCTION With ihe exception of a few areas in Otago—where growth has been retarded by cold, the weather throughout the Dominion, during October was very favourable for the growth of both crops and pastures. Stock are reported to be showing improvement in condition, although the effects of the severe winter are still apparent in some districts. Dairy production during the first two months of the present season was reported to be below the corresponding period of last year, but reports from several districts indicate that a substantial portion of the leeway was made up during October.

The lambing season is stated to have been a favourable one, with mortality about normal, in spite of the severe winter and the drought conditions which prevailed in the late summer and autumn months. From information supplied to the Department of Agriculture by the various inspectors of stock, the average rate of lambing in the North Island is estimated at 84.40 per cent., compared with 80.11 per cent, in 1938. With 10,889,802 breeding ewes in the North Island, as shown in the 1939 sheep returns, the number ot lambs this season is estimated at 9,190,994. The previous season’s estimate was 8,600,625, and the actual number of lambs tailed 9,068,741. The South Island estimates are not yet available. BANKING FIGURES Although the average weekly value of bank debits to individual customers’ accounts (a useful indicator of the state of internal business activity) during October (£17,309,931) recorded the substantial increase of £2,365,858 abovu the average for the previous month, it was £404,370 below the figure for October 1938. Incidentally, October is the first month since January that has not recorded an average greater than that of the corresponding month of 1938. Deposits on current account, which normally show little variation between September and October, have on this occasion shown a substantial increase, the average for October being £35,745,269, compared with £34,668,923 for September. Normally, deposits on current account are at their lowest level at this period of the year but the usual downward seasonal movement which generally commences in May or June failed to eventuate on this occasion, and, compared with June, the October average shows an increase of £1,296,003. When compared with the corresponding month of 1938, the October figure shows an increase of £5,468,508, or 18.1 per cent. FIXED DEPOSITS INCREASE Fixed deposits, which had been declining almost continuously since the beginning of 1936, had reached a very low level in June, but since that month a slight but steady upward movement has been recorded, the increase for the four months amounting to £1,212,929. The ratio of free to fixed deposits was 112.35 per cent., compared with 95.24 per cent. 12 months earlier. Bank advances, contrary to the normal movement at this season of the year, have again shown a decrease, the average for October (£53,623,523) being £241,725 below the September average and £4,166,011 (7.2 per cent.) below the October 1938 figure. The ratio of advances to deposits has declined from 92,16 per cent, in October 1938, to 78.63 per cent, in October 1939. A further sharp rise in revealed by the figures for net note circulation, the average for October being £13,193,387, compared with £12,666,394 for the previous month and £10,525,579 for October 1938. The aggregate unexercised overdraft authorities, on October 30 totalled £23,846,294 compared with £23,284,065 on September 25, 1939, and £22,427,578 on October 31, 1938. OVERSEAS FUNDS The net overseas funds (on account of New Zealand business) of banks operating in New Zealand amounted at October 30 to £ (N.Z.)8,756,251 comparative figures for September ' 25, 1939, and October 31, 1938, being £(N.Z.)8,573,154 and £(N.Z.)11,855,475 respectively. Of the amount held at October 30, 1939, the trading banks held ‘£(N.Z.)3,023,255 and the Reserve Bank £(N.Z.)5,732,996. During the week ended November 20 the Reserve Bank’s net holdings of sterling funds increased substantially, and at that date (the latest available) amounted to £(N.Z.)7,531,070, the highest level shown since October 1938.