Stecl production down by 21 per cent
Figures roleased by the Iron and Steel Board roveal that production of steel in December, 1961 was no less than 21% down on tho figure for December, 1960, Total st@l production for 1961 was 9% down on that for 1960. iiore significantly, average utilisation of stecl capacity was only 143% in the fourth quarter of 1961 as against 94.8% for 1960. Low capacity working makes for higher prices so we got the paradox of pressure for price increase at a time when domand' is going down. Actual consumption of steel has declined very little what has been happening is that firms have been using their stocks up. This cannot go on indefinitely so if no other factor intervenes production will level up. On the othor hand the export market is expected to be much more competitive this year (export of steel was at a record of 4e2 million tons last year or nearly 20% of tctal production) Unemployment incroases in Australia
Unemployment at the end of December, last year reached a post-war record of 116,900 or 2.8% of labour force. The newly clectcd Government faced with this problem alongside o tiny majority is expected to re-introduce import controls to ‘protect! home industry. This in turn will mainly hit British exports. Profits up in 1961
Prefits of nearly 2,000 manufacturing companies roporting thoir results in 1961 showed an average increase of over 7% Thoir dividunds roso by 123%, industries which are more heavily monopolised sh agee The 1847 manufacturing companies
Those
owed far greater increase than aver=
tabulated in the Financial Times profits index mads an ovorall profit of more than £2,000 million, an increase of £136 million : on ths yoar. Tho Tobacco industry increased its profits by 10.5%, chomicals by 9. Shy Tron and Steel by 21% ana Finance, land ana property by 11.5% ; = : british reserves too dependent on short=+t
In his annual statement Bank, Sir Harold Y said that “too much for comfor