6.7

4.

The movement in the price of labour, as indicated by

the movement in wage rates, has already been discussed in

Chapter

During the twelve months ending March 1986, earnings (in terms of payroll per person engaged) in the manufacturing sector and in the services sectors continued to increase quite rapidly, both in money terms and in real terms. Construction wage rates also showed some increase in

real terms.

6.8

The price of fixed capital, as indicated by the unit

value index of

of imports of capital goods, rose substantially during the six months ending May 1986 (paragraph 6.4). This was largely due to the depreciation of the Hong Kong dollar, particularly against the currency of Japan, from which most of the capital goods were imported.

Output prices

6.9

In part reflecting the higher import prices of raw materials and semi-manufactures, manufacturing output prices, measured in terms of the unit value index of domestic exports, increased by

(5) by 1%

in the second quarter of 1986 compared with both the previous quarter and the same quarter last year.

(5)

/6.10

Year-on-year rates of increase in the unit value indexes of domestic exports (%):

2222 då

1985 Q1

1986 Q1

Q2*

Year-on-year rates of increase (%)

4

1

-2

-4

0

1

(*) Estimated by using trade indices available up to May 1986.

57

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