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THURSDAY, NOVEMBER 25, 1982
ACCORDING TO THE REPORT, THE DECLINES IN REAL TERMS IN DOMESTIC EXPORTS AND IN THE RETAINED IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURES AND OF CAPITAL GOODS INDICATE THAT ACTIVITY IN THE MANUFACTURING SECTOR REMAINED RATHER DEPRESSED IN THE THIRD QUARTER. THE FINDINGS OF THE QUARTERLY BUSINESS SURVEY CONDUCTED IN JULY 1982 AND OF THE MONTHLY SURVEY ON EMPLOYMENT, PAYROLL AND ORDERS-ON-HAND ALSO CONFIRMED THE ABOVE OBSERVATION. THERE WERE, NEVERTHELESS, REPORTS OF ORDERS IN THE GARMENT INDUSTRY PICKING UP TOWARDS THE END OF SEPTEMBER AND IN EARLY OCTOBER.
ON THE PROPERTY SECTOR, THE REPORT POINTS OUT THAT ALTHOUGH THERE ARE INDICATIONS THAT DEVELOPERS HAVE BEEN MAKING ADJUSTMENTS IN THE PACE OF ONGOING BUILDING WORK, COMPLETIONS IN TERMS OF TOTAL USABLE FLOOR AREA CONTINUED TO BE SUBSTANTIAL IN THE THIRD QUARTER. GIVEN A VERY HIGH VACANCY POSITION AT THE END OF 1981, SUPPLY WAS ABUNDANT IN RELATION TO DEMAND. AS A RESULT, PROPERTY PRICES AND RENTALS EITHER LEVELLED OFF OR DECLINED COMPARED WITH THE PREVIOUS YEAR.
ON PRICES, THE REPORT NOTES THAT THE RATE OF INFLATION, AS INDICATED BY THE YEAR-ON-YEAR INCREASE IN THE VARIOUS CONSUMER PRICE INDEXES, AVERAGED ABOUT 10 PER CENT IN THE THIRD QUARTER. THIS REPRESENTS A SIGNIFICANT IMPROVEMENT WHEN COMPARED WITH EQUIVALENT INCREASES OF 11 PER CENT IN THE SECOND QUARTER AND 13 PER CENT IN THE FIRST QUARTER OF THIS YEAR, AND OF 15 PER CENT IN 1981.
BOTH THE INTERNAL AND EXTERNAL FACTORS FAVOUR A FURTHER DECLINE IN THE RATE OF INFLATION, ALTHOUGH THE WEAKER TONE OF THE HONG KONG DOLLAR MORE RECENTLY MIGHT AFFECT THE PRICE LEVEL ADVERSELY IN DUE COURSE.
THE THIRD QUARTER ECONOMIC REPORT 1982 IS NOW ON SALE AT $10 A COPY.
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