XN000022-1979-10-03 — Page 3

WEDNESDAY, OCTOBER 3, 1979

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+PARTLY BY THE NATURE OF THEIR BUSINESS BUT IN LARGE MEASURE AS A RESULT OF THEIR OWN INITIATIVE THEY ARE STRONGLY DIVERSIFIED AS TO PRODUCT LINES, HE SAID.

+ IF THEY HAD NOT BEEN, SOME OF THE MAJOR CHANGES WHICH HAVE TAKEN PLACE RECENTLY COULD HAVE BEEN DAMAGING TO THE INDUSTRY AS A WHOLE, HE SAID.

+THEY ARE ALSO HEALTHILY DIVERSIFIED IN THEIR MARKETS. IT IS A PARTICULARLY HEALTHY SIGN THAT THE INCREASED TRADE THEY HAVE RECORDED IN THE FIRST HALF OF THIS YEAR HAS BEEN FAIRLY EVENLY SPREAD AMONG OUR LEADING AND MEDIUM-SIZED MARKETS, AND THAT POSITIVE GROWTH WAS RECORDED IN ALMOST EVERY ONE INCLUDING NEW MARKETS, HE ADDED.

SIR JACK NOTED THAT THE OVERALL GROWTH RATE FOR DOMESTIC EXPORTS IN THE FIRST HALF OF THE YEAR WAS 34 PER CENT AND THAT SHIPMENTS OF TOYS FOR THE SAME PERIOD ADVANCED OVER 51 PER CENT TO A VALUE OF MORE THAN $2 000 MILLION.

+PERFORMANCE AT THIS LEVEL BY AN INDUSTRY WHICH IS A MAJOR EMPLOYER AND IN TERMS OF EXPORTS THE THIRD LARGEST SECTOR OF OUR MANUFACTURING INDUSTRY, IS OF REAL SIGNIFICANCE FOR OUR ECONOMY AND DESERVES EXAMINATION, HE SAID.

+ IT CERTAINLY DID NOT HAPPEN BY ACCIDENT, AND THIS OCCASION PROVIDES EVIDENCE OF THE EFFORT WHICH HAS GONE INTO THE DEVELOPMENT OF THE TOY INDUSTRY, HE ADDED.

MONEY AND BANKING STATISTICS FOR AUGUST

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THE MONEY SUPPLY AND BANKING FIGURES FOR AUGUST 1979 ARE PUBLISHED TODAY (WEDNESDAY).

THEY SHOW A MARKED SLOWING DOWN IN THE RATE OF GROWTH OF CREDIT TO THE ECONOMY, REFLECTING THE INCREASE IN PRIME RATE OF 1.5 PER CENT ANNOUNCED ON AUGUST 18.

MONEY SUPPLY

M1 ROSE BY 1.6 PER CENT AGAINST 1.9 PER CENT IN JULY. M2 ROSE BY 1.7 PER CENT, AGAINST 2.0 PER CENT IN JULY, WHILE M3 ROSE BY 1.8 PER CENT IN AUGUST, WHICH WAS UNCHANGED FROM JULY.

IN THE LATEST THREE MONTHS M2 HAS RISEN AT AN ANNUAL RATE OF 30 PER CENT, AND M3 AT AN ANNUAL RATE OF 25 PER CENT. THESE FIGURES ARE BROADLY COMPATIBLE WITH THE FORECAST GROWTH RATE IN 1979 OF GDP AT CURRENT PRICES OF ABOUT 27 PER CENT.

DEPOSITS WITH DEPOSIT-TAKING COMPANIES ROSE VERY SHARPLY IN AUGUST. PROBABLY IN RESPONSE TO THE HIGHER RATE OF INTEREST OFFERED ON DEPOSITS DURING THE MONTH.

/CREDIT TO