Br ON WAY 1563 The Economist of pril 20th carried an annlygis of company balance= sheets and profit and loss accounts published in the first quarter of this year. Its comment is optinistic about future prospects:
"If one takes the steel companies out of the reckoning of company profits published in the first quarter of this yesr, the result is a rise in trading profits, compared with the previous year's figures, of Si. These are the results for a year that ran roughly to the end of ! last September, when the industrial production index was teetering before the sharp winter fall. They may not be exciting, and some groups with f their own special problems (paper and packaging, the textiles componies : and enginecring) make as bad a showing as that of the stecl industry in its most miscrable postwar yeor.......", the long article goes to consider in detail various aspects of profit prospects, and concludcs:
"...eIndustrial confidence is bettor but hordly strong yet. External trade is lamco. Sieling is stronger but not yet SECUTG.
The odvantoges that everyone had counted on from joining the Common Market will not be renlised. Efficiency in industry has improved, but so far nat the expense of under-employment of plants and men.e.seeYet despite all this it will be surprising if the improvement in economic prospects, as measured by the general level of ordinary shares (and this has not been a bad guide
It. took the daffodils
in the past) docs not continue for some time yet. a leng time to appecr this ycar; but they are out now."
The figures the Economist uses to back up its argument,that despite the gencrolly wenk position of thc British coonomy the outlook for profits is bright, arc produced below: