MONTHLY ABSTRACT

Waihi Daily Telegraph, Volume XXXVI, Issue 9062, 22 April 1937, Page 2

MONTHLY ABSTRACT

REVIEW OF. BUSINESS STATISTICS UNUSUAL FEATURES TRADE SITUATION IMPROVED Statistical indicators of the trend in business conditions in the Dominion during the month of February exhibit several features of interest. states the latest issue of the "Monthly Abstract of Statistics." Perhaps the most noteworthy are the recording of new peak levels in respect of bank debits—i.e., the value of cheque transactions—and of deposits on current account. High figures—though not records—were also shown tpv the value of commodity exports and for bank notes in circulation. February is at the flush of the exporting season, and, though it is a short working month, statistical series for that month' usually show considerable seasonal buoyancy. Nevertheless, even when allowance is made for the seasonal tendencies, most statistical criteria of economic conditions afford grounds for optimism. Employment continues to improve, judging by the statistics of unemployed males, the number of men so classified having fallen by 3294 between the middle of January and the middle of March. In March of 1936 there were 54,529 men unemployed, a decrease of 36.7 per cent, having thus taken place during the past twelve months. Despite this very material decrease, the number of unemployed males on March 13 of this year was 34,526 —still a considerable residum.

The high level of the bank-note circulation in comparison with, the figures for February of recent years points to a material improvement in the spending power of the people generally, while a substantial increase in savings bank deposits has been recorded, indicating a greater saving of small amounts. The external trading situation has improved materially, the continuance of very satisfactory prices for wool being an important factor contributing to this desirable result. Overseas prices for dairy produce are also hardening after a period of relative depression, while meat prices remain firm. A factor partially offsetting the advantage Dominion from higher prices of" export produce is to be found in the rising level of

prices of certain commodities imported into the Dominion. Nevertheless, on balance, a rising price level overseas is of considerable advantage to New Zealand in view of her heavy export trade and relatively high fixed financial commitments overseas. . BANKING FIGURES Two of the best indicators of internal business conditions generally, are to be found in the statistics of bank debits to customers' account, and in the statistics of the circulation of bank-notes. The latest figures for both these criteria of economic circumstances reveal a remarkable improvement. The average weekly value of bank debits to individual customers' accounts in the trading banks during February was £22,015,860, the highest average on record for any individual month since these .statistics first became available (in April, 1928). February is normally one Qf the peak months of the year in respect of bank debits, being at the flush of the farm production "season; while the transfer of funds consequent on' the payment of income tax in that month also tends to swell the volume of bank debits.

For some months past, statistics of bank debits have shown exceptional buoyancy (when allowance has been, made for seasonal factors), the *testoration of wage rates to 1930 levels, the decrease in unemployment, and the improved tone of business activity generally, being reflected in the greater flow of banking funds. These factors have contributed to the heightened seasonal flush of cheque transactions recorded during February., EXTERNAL TRADE Exports of merchandise during February were valued at £7,730,755, the highest monthly total (measured in New Zealand currency) since. February, 1929, and an increase of £690,704 over the total for January. Exports of butter increased considerably both in quantity and in value as compared with the January exports of this commodity, while exports of lamb also showed a material increase. The quantity, of exports of wool was lower than in January, the aggregate value of exports of this commodity falling from £3,177,852 in January to £2,626,352 in February—still a very high figure for a single month. Imports of merchandise during February were valued at £3,712,425, a decrease of £952,991 from the January total, but an increase of £725,944 over the total in February, 1936. A decrease in imports is normally recorded in February, though there have been exceptions. External trading in commodities during February resulted in an excess of export values amounting to

£4,018,330 as compared with £2,374,635 in January. During- the expired eight months of the current exporting season, exports of commodities have exceeded imports of merchandise by £4,640,000 as compared with £4,596,000 during the same period of last season. Although the balance is approximately the same for the two periods, the values of both exports and imports during the current season are much higher than was the case last season. BUILDING ACTIVITY The value represented by building permits issued during the month of February was £429,237, an increase of £&0,810 over the total in January, but a decrease of £85,737 from the total for February of last year. There were 238 permits issued in February for the erection of new dwellings, an increase of 14 over the total in January but a decrease of 12 as compared with the total in February nf last year. SALES TAX

Sales ta£ collections during February totalled £194,624, a decreas3 of £99,807 as compared with the total in January. The yield from this tax is normally very low in February, sales tax collections in that month being almost wholly on account of January sales. January is the slackest month of the year in re(Continued foot ot nest page.) ' ■) • ■■■■ • . ••••■ -'--'4 - . 44;