CONFIDENTIAL **
G.F. 326
2
3.
After having declined in the second half
of 1985 and in the first half of 1986, investment in
plant and machinery revived in the third quarter and
gathered momentum in the fourth quarter. The revival was particularly significant in the case of
industrial machinery for use in the manufacturing
sector. With regard to property, there was a very substantial increase in planned developments in
respect of commercial property in 1986. In line with improved investment intentions in the
manufacturing sector, planned developments in
industrial property also increased significantly.
Planned developments in residential property
increased in terms of floor area but decreased in
terms of numbers of units, as some developers
shifted to the development of larger flats during
the course of 1986. Comparing the fourth quarter of
1986 and 1986 as a whole with the same periods in
1985, completions of industrial and residential
buildings increased, while completions of commercial
premises declined. The demand for most types of property in the fourth quarter of 1986 remained generally firm, and the property market continued to
be active.
Investment in plant and machinery
4.
(a) Capital expenditure on plant and
machinery
Based on the preliminary estimates from
the quarterly GDP series (because of data
limitations quarterly estimates of GDP are produced
for internal reference only), overall capital
expenditure on plant and machinery (including
retained imports and local production) grew by 11%
CONFIDENTIAL #