WEDNESDAY, MARCH 8, 1978
SURVEY OF HONG KONG'S ECONOMIC PROSPECTS FOR 1978
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THE CENSUS AND STATISTICS DEPARTMENT TODAY RELEASED THE RESULTS OF A SURVEY OF HONG KONG'S ECONOMIC PROSPECTS FOR 1978 BASED ON THE VIEWS OF ABOUT 500 MANUFACTURING ESTABLISHMENTS, INCLUDING SOME OF THE LARGEST CONSTRUCTION COMPANIES.
THE MANUFACTURING ESTABLISHMENTS, WHICH EMPLOYED MORE THAN 100 WORKERS, WERE SELECTED TO REPRESENT VIEWS OF THE TEN MAJOR MANUFACTURING INDUSTRIES.
THE SURVEY WAS CARRIED OUT IN CONJUNCTION WITH THE QUARTERLY BUSINESS SURVEY OF THE FOURTH QUARTER OF 1977, RESULTS OF WHICH HAVE BEEN RECENTLY PUBLISHED.
A SPOKESMAN FOR THE CENSUS AND STATISTICS DEPARTMENT SAID THAT THE ECONOMIC PROSPECTS SURVEY PROVIDED INDICATIONS OF MANUFACTURERS' VIEWS OF PROSPECTS FOR THE IR INDUSTRIES AND WAS ONE OF THE MANY SOURCES OF INFORMATION THE FINANCIAL SECRETARY TOOK INTO ACCOUNT IN DRAWING UP HIS FORECASTS FOR THE HONG KONG ECONOMY IN 1978 GIVEN IN THE BUDGET SPEECH.
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ACCORDING TO THE SURVEY, MANUFACTURERS WERE CAUTIOUSLY OPTIMISTIC ABOUT PROSPECTS FOR DOMESTIC EXPORTS IN 1978. EXPECTED AN OVERALL INCREASE OF ABOUT 3 PER CENT IN REAL TERMS, WITH THE UNITED STATES MARKET BEING SEEN AS THE MAJOR CAUSE OF THE IR OPTIMISM.
MANUFACTURERS EXPECTED LITTLE OR NO CHANGE IN THE EXPORT DEMAND FOR PRODUCTS OF THE TEXTILES AND CLOTHING INDUSTRIES IN REAL TERMS. AMONG OTHER MANUFACTURED GOODS, EXPORTS OF METAL PRODUCTS, AND ELECTRICAL MACHINERY AND APPLICANCES WERE EXPECTED TO SHOW FASTEST GROWTH.
CAPACITY UTILISATION AND EMPLOYMENT IN MANUFACTURING WERE EXPECTED, BY THOSE MANUFACTURERS COVERED IN THE SURVEY, TO INCREASE DURING 1978. IN ADDITION, CAPITAL EXPENDITURE BY MANUFACTURERS WAS EXPECTED TO INCREASE BY ABOUT 13 PER CENT TO 14 PER CENT.
PRICES OF RAW MATERIALS AND SEMI-MANUFACTURES FOR USE IN MANUFACTUR ING WERE EXPECTED TO REMAIN FAIRLY STABLE, AS WERE EXPORT PRICES. ON THE OTHER HAND, WAGE RATES IN MANUFACTURING WERE EXPECTED TO INCREASE BY ABOUT 6 PER CENT.
IN ORDER TO COPE WITH THE INDUSTRY'S EXPECTED EXPANSION IN ITS OPERATIONS IN 1978, CONSTRUCTION COMPANIES COVERED IN THE SURVEY EXPECTED AN INCREASE OF 20 PER CENT CAPITAL EXPENDITURE ON CONSTRUCTION MACHINERY AND EQUIPMENT AND EXPECTED TO ENGAGE 9 PER CENT MORE CONSTRUCTION WORKERS. WAGE RATES IN THIS INDUSTRY WERE EXPECTED TO INCREASE BY ABOUT 10 PER CENT.
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