RISING BUSINESS PREDICTED IN U.S.A.

Hawke's Bay Herald-Tribune, Issue 65, 3 April 1937, Page 4

RISING BUSINESS PREDICTED IN U.S.A.

Government economista in America have predicted an upward surge in industrial and business activity, which has been interrupted in recent veeks by floods and strikes. Along with this will come continued improvement in purchasing power of consumers, said the Bureau of Agricultural Economics. It forecasts strong prices fOT major farm products in the next few months. The settlement of maritime, automobile and plate glass strikes will expand employroent and pay rolls, and "large private and Governmental Bfxpondituros for rehabilitation of the flood areas will help to stimulato general business in the immediate future," the bureau said. The poasibility of a repession in business later this year wias d.iscussed. The bureau said some trade leaders belioved buying had moved ahead of consumption and that a natural reaction must follow in some lines. This view w|as discounted by the bureau, however. It also mentioned "boom" conditions in seme foreign countries, declaring that some observers attribntpd these booms to rearmament programmes. "A severe slump in business in the affected countries is expected by some observers when rearmament is carried to the point considered desirable or practicable, and Government borrowing or credit stimulation for this purpose ceases," say the Americ'an eeonomists, "At present, however, there are no indicati'">:- that this climax will he reached in the noa? futur?,"