CONFIDENTIAL #B

C.F# 376.......

15

(iii) In the clothing industry, investment

in the knitwear sector was weak during

the second quarter, while that in the

cut-and-sewn sector was generally

sustained.

(iv)

(v)

In the textiles industry, sluggish business continued to discourage new

investment. Machinery and equipment

were acquired mainly to replace

obsolete ones. The value of retained

imports of textile machinery in the

second quarter of 1989 was lower than

in both the second quarter of 1988 and

the first quarter of 1989.

Investment interest in the plastics

industry was maintained in the second quarter as overseas demand for plastic products improved. Local suppliers of plastic injection moulding machines reported an increase in sales in the

second quarter over the first quarter

of 1989.

(vi)

Investment in the metal products

industry was also active, with

increased sales reported by local

suppliers of metal-working machinery.

Economic Analysis Division Economic Services Branch Government Secretariat

31 August 1989

CONFIDENTIAL = ne

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