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5

not available for all the categories. Caution should be exercised in interpreting

the changes in values shown in Table 3, as

increases in the prices of imported capital

goods have been fairly rapid in recent years.

7.

(c) Retained imports of industrial

machinery for use in the

manufacturing sector

Retained imports of industrial

machinery for manufacturing use grew by 18%

in the third quarter, following increases of

18% in the first quarter and 4% in the second

quarter. Taking the first three quarters of

1988 together, these retained imports grew by

13%. The corresponding growth rate for 1987

as a whole was 18% (Table 2).

Notwithstanding a less rapid growth in domestic exports and a firming up of local

interest rates, the investment intentions of

manufacturers have apparently remained

generally strong. The tight labour market

conditions have almost certainly contributed

to this. An exception is the textiles

industry, in which investment in textile

mechinery showed a substantial decline

(Table 3).

(d)

Retained imports of capital

goods other than for

manufacturing use

G.F. 326

CONFIDENTIAL #

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