Steel production again down
As noted previously in the Bulletin, the December figures for steel production were 20% down on those of December, 1960. It had been thought that this was mainly due to firms giving longer Xmas holidays than the previous year. However, now the trond has continued into 1962 with the January figure being 20% down on that of January 1961. Speaking about the position in the last three months of 1961, the Iron and Stcel Board in its latest bulletin suys that there was "a continucd and substantial reduction of stocks in the fourth quarter of the year." It is estimated that this was of the figure of 300,000 to 400,000 ingot tons. Consumption of finished steol in the home market in the period was 14% down on the previous quarter and 10% down on the same quarter 1960. The board says that the reasons for this are not clear but suggests that the steel consumers are not only reducing their stocks of unfinished steel but also those of compcir: ents. If this is t.e case there will probably be some recovery because such reduction can only be of a 'one=time' case. Moreover, car production is going up and there will be a build up of stexvxl and coment stocks,
Despite the latter points, the offects of the steel slump in production are making themselves felt. The Steel Company of Wales have announced that the Melting shop at their huge Margram works will close in the summer of 1963 making some 500 men out of work. Other closures have taken place at Middlesborough and in Scotland. January trace fijures, show huge deficit
The trade figures for Brit in in January were the worst since May 1961, that is, before all the Government's measures which were supposed to deal with the economic situation were put into force. Imports rose sharply by £30 millions and this combined with an levelling off of exports gave a deficit of £68 millions (all figures are seasonally adjusted) Bxports at £300 million wore bolow the avor age figure for any quarter of 1961. The increase in exports that the Government has been hoping for is a long time coming, indeed the fizures for the three months November, Decomber and January shown a decline of 3% as compared with the previcaus three months. Of course, the figures for any i articular month are likely to be influencod by 'accidontal' foatures, but thing is certain, these figures indicate that oven on their assumpticns the job the the Toriocs set themselves to ado is no nearer success. Despite the wages pause, the credit squeoze, the high bank LHvSs etc., no fundamental improvement in the capitalist cconomy has taken place,
Bel. inquiry reveals more pessimistic outlook
Tho latest inquiry conducted shows that 28% of businessmen feel 1 situation than they did four months