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THURSDAY, NOVEMBER 7, 1974.
THE REPORT SAYS THAT, DESPITE THE INCREASE IN DOMESTIC EXPORTS, EMPLOYMENT IN REGISTERED AND RECORDED MANUFACTURING ESTABLISHMENTS DECLINED, REFLECTING A SLACKENING OF ORDERS FROM ABROAD AGAINST A BACKGROUND OF A SLOWING DOUN IN THE GROWTH OF WORLD DEMAND GENERALLY.
THE FIGURES SHOW THAT EMPLOYMENT IN THESE ESTABLISHMENTS DECLINED BY ABOUT 28,600, OR 5 PER CENT DURING THE 12 HONTHS TO JUNE THIS YEAR, COMPARED WITH AN INCREASE OF 3 PER CENT IN THE PREVIOUS 12 MONTHS PERIOD, THERE WAS ALSO A DECLINE IN REPORTED VACANCIES.
ON A BRIGHTER NOTE, THE GENERAL CONSUMER PRICE INDEX REMAINED STEADY IN THE SECOND QUARTER, COMPARED WITH A RISE
ON A OF SOME 5 PER CENT IN THE SAME PERIOD LAST YEAR. SEASONALLY ADJUSTED BASIS, THE INDEX INCREASED BY 15 PER CENT IN THE YEAR ENDING JUNE 1974, AGAINST A RISE OF 16 PER CENT IN THE PREVIOUS 12 MONTH PERIOD.
THE FOODSTUFFS COMPONENT OF THE INDEX DECLINED BY 3 PER CENT IN THE SECOND QUARTER, BUT, DESPITE THIS, CHANGES IN FOOD PRICES STILL MADE BY FAR THE LARGEST CONTRIBUTION — 66 - OVERALL RISE IN THE INDEX OVER THE 12 MONTHS.
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TO THE
ACTIVITY IN THE BUILDING AND CONSTRUCTION INDUSTRY REMAINED RELATIVELY QUIET IN THE SECOND QUARTER, WITH PROPERTY PRICES CONTINUING TO FALL AND WITH INCREASES IN PRIVATE SECTOR RENTS SHOWING FURTHER SIGNS OF SLOWING DOWN OR LEVELLING OFF.
IN THE SECTION ON THE MONEY AND FOREIGN EXCHANGE MARKETS, THE REPORT SAYS THAT THE INCREASE IN BANK DEPOSITS IN THE SECOND QUARTER WAS LOWER THAN FOR EACH OF THE PREVIOUS TUO QUARTERS. IN CONTRAST, THE INCREASE FOR ADVANCES AND LOANS WAS HIGHER. IN JUNE, THE AVERAGE RATIO OF BANKS' LIQUID ASSETS TO DEPOSITS WAS 41 PER CENT.
IT ADDS THAT THE EXTERNAL VALUE OF THE HONG KONG DOLLAR REMAINED FIRM AND, IN THE 12 MONTHS TO JUNE THIS YEAR, THE CUMULATIVE APPRECIATION OF THE HONG KONG CURRENCY, IN TERMS OF A WEIGHTED AVERAGE OF OTHER CURRENCIES, AMOUNTED TO 3.5 PER CENT.
COMMENTING ON THE REPORT, A GOVERNMENT SPOKESMAN SAID THAT THE FACT THAT HONG KONG'S EXPORTS HAVE RISEN IN VOLUME TERMS BY 8 PER CENT IN THE 12 MONTHS TO THE END OF JUNE +IS ENCOURAGING+, COMPARED WITH THE PERFORMANCE OF OTHER TRADING COUNTRIES AND AGAINST A BACKGROUND OF WORLD ECONOMIC DIFFICULTIES. +AND THE PROSPECTS OF MAINTAINING OUR EXPORTS, AND, CERTAINLY, OF BEING ABLE TO TAKE FULL ADVANTAGE OF ANY FUTURE RECOVERY IN WORLD DEMAND WHEN IT COMES, ARE FAVOURABLE BECAUSE HONG KONG'S PRODUCTIVITY IS NOW HIGH AND OUR COMPETITIVE POSITION ABROAD IS VERY STRONG.+
HE POINTED OUT, HOWEVER, THAT THE REPORT DOES REFER TO THE SECOND QUARTER OF THE YEAR AND THAT. IN THE PERIOD SINCE THEN, IT HAS BECOME MORE EVIDENT THAT HONG KONG IS BEGINNING TO FEEL THE EFFECTS OF A SLOWING DOWN IN WORLD TRADE AS A RESULT OF THE OIL CRISIS. AND IT SEEMS LIKELY THAT THIS IS CONTINUING TO HAVE AN EFFECT ON EMPLOYMENT IN MANUFACTURING INDUSTRIES.
/HOWEVER,
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