TUESDAY, NOVEMBER 22, 1983
FIRMS IN THE OTHER INDUSTRIES ALSO EXPERIENCED AN IMPROVEMENT IN BUSINESS TO VARYING DEGREES. NOTABLY, THE BUSINESS UPTURN FOR THE TEXTILES' INDUSTRY IN THE THIRD QUARTER TURNED OUT TO BE MORE SUBSTANTIAL THAN EARLIER EXPECTED.
FOR THE FOURTH QUARTER, FIRMS IN THE 'FOOD, BEVERAGE AND TOBACCO AND 'PLASTICS' INDUSTRIES EXPECT A DECLINE IN BUSINESS WHICH IS MAINLY DUE TO SEASONAL FACTORS.
RESPONDENTS IN THE WEARING APPAREL', 'TEXTILES', 'FABRICATED METAL PRODUCTS' AND 'ELECTRONICS' INDUSTRIES ANTICIPATE THE IMPROVEMENT IN BUSINESS TO CONTINUE INTO THE FOURTH QUARTER, WHEREAS LITTLE CHANGE IN BUSINESS OUTLOOK IS INDICATED BY RESPONDENTS IN THE OTHER INDUSTRIES.
FIRMS IN THE CONSTRUCTION' SECTOR REPORTED A POORER PERFORMANCE IN THE THIRD QUARTER AND A CONTINUED DOWNTREND IS EXPECTED FOR THE FOURTH QUARTER.
FIRMS IN THE WHOLESALE AND RETAIL TRADE' AS WELL AS THE 'RESTAURANTS' SECTORS EXPERIENCED AN UPTURN IN BUSINESS IN THE THIRD QUARTER AND ARE FAIRLY CONFIDENT ABOUT THE BUSINESS OUTLOOK FOR THE FOURTH QUARTER.
BUSINESS IN THE 'HOTELS' SECTOR WAS MAINTAINED AT THE SECOND QUARTER LEVEL DURING THE THIRD QUARTER.
THIS WAS A FAVOURABLE SITUATION SINCE ACCORDING TO HISTORICAL PATTERNS, THIRD QUARTER PERFORMANCE IS NORMALLY MUCH BELOW SECOND QUARTER PERFORMANCE. FURTHERMORE, A SIGNIFICANT IMPROVEMENT IS EXPECTED IN THE FOURTH QUARTER WHICH IS USUALLY THE SEASONAL PEAK.
THE 'OTHER SERVICES' SECTOR ACHIEVED A MILD UPTURN IN BUSINESS IN THE THIRD QUARTER AND FURTHER IMPROVEMENTS IN BUSINESS ARE EXPECTED FOR THE FOURTH QUARTER, WITH FIRMS IN THE 'TRANSPORTATION INDUSTRY PARTICULARLY OPTIMISTIC.
AS FOR BANKS, THE EARLIER EXPECTATION OF A SUBSTANTIAL IMPROVEMENT IN BUSINESS IN THE THIRD QUARTER DID NOT MATERIAL ISE ALTHOUGH THE BUSINESS CLIMATE, WHICH HAD BEEN UNFAVOURABLE FOR THREE OR FOUR QUARTERS, HAD IMPROVED. THEY ARE VERY CONSERVATIVE IN THE IR EXPECTATIONS FOR THE FOURTH QUARTER BUSINESS OUTLOOK.
UNCERTAINTIES THROUGH EXCHANGE RATE FLUCTUATIONS, HIGH MATERIAL PRICES AND HIGH INTEREST RATES WERE THE MAJOR PROBLEMS EXPERIENCED BY FIRMS IN THE 'MANUFACTURING SECTOR IN THE THIRD QUARTER.
THESE PROBLEMS WERE REPORTED BY A LARGE MAJORITY OF MANUFACTURING FIRMS AND ARE EXPECTED TO PERSIST IN THE FOURTH QUARTER.
AS REGARDS THE 'CONSTRUCTION' SECTOR, INSUFFICIENT BUSINESS CONTRACTS AND PRICE COMPETITION FROM FIRMS IN HONG KONG CONTINUED TO BE THE MAJOR PROBLEMS, WITH LITTLE PROSPECT OF EASING IN THE COMING QUARTER. INCREASING CONCERN WAS INDICATED BY RESPONDENTS WITH REGARD TO THE PROBLEM OF UNCERTAINTIES OVER EXCHANGE RATE FLUCTUATIONS AND HIGH MATERIAL PRICES FOR THE THIRD AND FOURTH QUARTERS
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