IMPROVEMENT IN TRADE

Taranaki Daily News, 11 September 1934, Page 12

IMPROVEMENT IN TRADE

MARKED INCREASE IN IMPORTS. BANKING POSITION CHANGES. The normal seasonal falling-off in export trade is reflected in business statistics for the month of July, reports the Government Statistician. From the data available, it would appear, however, that business activity as a whole has not slackened to the normal seasonal extent between June and July of this year. Normal seasonal influences are apparently being counteracted to a large extent by an upward cyclical movement in business conditions. The value of imports in July was as much as 65 per cent, higher than in June, the increase in import values being considerably greater than the fallingoff in the value of exports. Consequently the value of the total external trade was exceptionally high (for recent years) in July, showing an increase of £695,000 in New Zealand currency over the figure for June. An increase in the total value of external trade is a most unusual occurrence at this time of the year. As a result of abnormally heavy July imports, the total manifest tonnage handled at the various ports has increased by 20 per cent, since June, whereas a sharp drop is normally revealed by the July figures.

Building permits issued during July were 13 per cent, higher in value than for June, despite a considerable fallingoff in the issue of permits for the erection of dwellings, while land transfer and mortgage business were both on higher levels than in the previous month. The outstanding feature of the trade statistics for July is an exceptional increase ip the value of merchandise imported. Imports during July were valued at £2,355,545, equivalent to £2,294,000 in sterling or £2,867,000 in New Zealand currency. During the current calendar year imports have shown an jipward tendency. There was a falling-off, however, between May and June, and a rise of as much as 64.8 per cent, between June and July, with the result that the July, 1934, value is the highest recorded since February, 1931. z As a consequence of this sharp rise in imports, combined with the usual seasonal falling-off of exports, the value of imports in July exceeded that of exports by £13,000 in sterling value, or £16,000 in New Zealand currency. It is normal for imports to exceed exports in value during the slack period of the exporting season; but, as a rule, an actual excess of imports is not reached until August or September. It is, perhaps, noteworthy that in 1932 and 1933 imports exceeded exports in value in only one month (September in each case), whereas in 1930 a deficiency in export values was recorded in each month from August to December. SALES TAX YIELD INCREASES. From the increase in sales tax collected during July, it would appear that improving trading conditions counteracted an expected seasonal decrease. It is, perhaps, germane to the question of sales tax to point out that imports (most of which are subject to this tax) have so. far shown a buoyant tendency during 1934 as compared with 1933. The average weekly value of bank debits to individual customers’ accounts during the month of July was £11,503,437, a slight decrease as compared with June. Deposits on current account fell by £389,115 to £21,930,115. A fall in “free” deposits is, however, normal at this time ,of the year. Fixed deposits rose slightly to £41,767,406, the highest monthly average recorded during the period covered by weekly banking statistics (April, 1928, to date). Advances fell by £581,760 to £40,596,940, the lowest monthly figure recorded in recent years; and, as a consequence of the abnormally high total of deposits and the continuous fall in advances, the ratio of advances to deposits was as low as 62.83 per cent.

Transfers of land registered during July numbered 1616, the total consideration being £1,085,910. A slight increase both in respect of numbers and in the value involved is recorded as compared with .the previous month, while both totals are considerably above the July, 1933, figures. Mortgages registered in July totalled 1268, the amount being £881,518. In this instance, also, the figures are higher than in the preceding month and the corresponding month of last year.