Commentary

During the three months from August to October, with which this Commentary is mainly concerned, industrial costs and prices continued to rise very much faster than domestic output. Consumption was still increasing but, apart from some further stockbuilding, there was probably little change in other elements of demand. In the balance of payments, the current account remained in moderate surplus in the third quarter, but this was outweighed by investment and other capital outflows, particularly in September. The growth of bank advances slackened appreciably but, to emphasise the need for continued restraint, a further call for Special Deposits from the clearing banks and the Scottish banks was announced on 29th October, Money supply and domestic credit increased much less rapidly in the third quarter than in the second, despite the redemption of a large government stock,

Commentary