WEDNESDAY, NOVEMBER 26, 1980
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REPORT ON LATEST QUARTERLY BUSINESS SURVEY
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A QUARTERLY BUSINESS SURVEY CONDUCTED LAST MONTH (OCTOBER) SHOWED THAT BUSINESS PERFORMANCE IN THE THIRD QUARTER OF 1980 ON THE WHOLE TURNED OUT BETTER THAN PREVIOUSLY EXPECTED.
IN THE SURVEY, ABOUT 900 FIRMS FROM VARIOUS INDUSTRIES AND BUSINESSES, FORMING A CROSS-SECTION OF THE ECONOMIC COMMUNITY, WERE ASKED ABOUT THEIR BUSINESS EXPERIENCE IN THE THIRD QUARTER.
RESPONDENTS WERE ALSO ASKED ABOUT THEIR BUSINESS EXPECTATIONS FOR THE FOURTH QUARTER FIRMS IN THE CONSTRUCTION AND TERTIARY SERVICES SECTORS EXPECTED FURTHER IMPROVEMENTS IN PERFORMANCE BUT THOSE IN THE MANUFACTURING SECTOR EXPECTED DETERIORATIONS.
TAKEN ALONG WITH PREVIOUS SURVEY RESULTS, IN PARTICULAR THOSE OF THE CORRESPONDING ROUND OF SURVEY LAST YEAR, THESE VIEWS SEEM TO SUGGEST THAT BUSINESS CONFIDENCE IS STRONG IN THE NON-MANUFACTURING SECTORS BUT RATHER WEAK IN THE MANUFACTURING
SECTOR.
IN THE MANUFACTURING SECTOR, SIGNIFICANT IMPROVEMENTS IN BUSINESS PERFORMANCE IN THE THIRD QUARTER WERE REPORTED BY THE +FOOD, BEVERAGE, TOBACCO+, +FABRICATED METAL PRODUCTS+, +ELECTRICAL MACHINERY, APPLIANCES AND SUPPLIES+, +ELECTRONICS+ AND +WATCHES AND CLOCKS+ INDUSTRIES.
HOWEVER APART FROM THE WATCHES AND CLOCKS INDUSTRY, FOR WHICH RESPONDING FIRMS PREDICTED FURTHER IMPROVEMENT IN BUSINESS OUTLOOK, RESPONDENTS IN THE OTHER FOUR INDUSTRIES GENERALLY EXPECTED DETERIORATION IN THE FOURTH QUARTER.
FIRMS IN THE +WEARING APPAREL AND +TEXTILES+ INDUSTRIES REPORTED WEAKENING IN BUSINESS IN THE THIRD QUARTER. FIRMS IN THE TEXTILES INDUSTRY, IN PARTICULAR, REPORTED SUBSTANTIAL DECLINE IN THE DEGREE OF UTILIZATION OF CAPACITY COMPARED WITH THE SECOND QUARTER.
THESE TWO INDUSTRIES EXPECTED FURTHER DETERIORATION IN BUSINESS PERFORMANCE IN THE FOURTH QUARTER, ALTHOUGH, TAKEN ALONG WITH PREVIOUS SURVEY RESULTS, SUCH DETERIORATION DOES NOT SEEM TO BE VERY SERIOUS.
FIRMS IN THE PRINTING AND +PLASTICS+ INDUSTRIES, WHICH REPORTED LITTLE CHANGE IN BUSINESS PERFORMANCE IN THE THIRD QUARTER, ALSO EXPECTED A DECLINE IN THE COMING QUARTER.
THIS RATHER UNFAVOURABLE OUTLOOK FOR THE MANUFACTURING SECTOR IN THE FOURTH QUARTER WAS PREDICTED GENERALLY BY RESPONDENTS AGAINST A BACKGROUND OF LOW ORDER BOOK POSITIONS WHICH THEY EXPERIENCED AT THE END OF THE THIRD QUARTER.
/THE SITIATION