20, 1985
THE BUSINESS ACTIVITY OF FIRMS IN THE WHOLESALE, RETAIL AND IMPORT/EXPORT TRADES AND RESTAURANTS SECTORS IN THE FIRST QUARTER OF 1985 WAS MAINTAINED AT A LEVEL SIMILAR TO THAT IN THE FOURTH QUARTER OF 1984.
A DECLINE IN BUSINESS IS ANTICIPATED BY FIRMS IN THE WHOLESALE, RETAIL AND IMPORT/EXPORT TRADES WHILE A SEASONAL DROP IN BUSINESS IS PREDICTED BY FIRMS IN THE RESTAURANTS SECTOR.
RESPONDENTS IN THE HOTELS BUSINESS EXPERIENCED A SEASONAL DOWNTREND IN BUSINESS IN THE FIRST QUARTER BUT THEY ARE CONFIDENT OF AN UPTREND IN BUSINESS IN THE SECOND QUARTER.
WITH REGARD TO THE OTHER SERVICES SECTOR, BANKS AND FIRMS IN THE REAL ESTATE DEVELOPMENT AND SERVICES BUSINESS EXPERIENCED AN UPTURN IN BUSINESS IN THE FIRST QUARTER.
AS FOR TRANSPORT, STORAGE AND COMMUNICATION, EXPERIENCE VARIED AMONG FIRMS BUT THE OVERALL SITUATION COULD BE CONSIDERED AS STABLE. LOOKING INTO THE SECOND QUARTER, FIRMS IN THE SECTOR ARE GENERALLY CONFIDENT OF IMPROVEMENTS.
THE SURVEY ALSO COVERED BUSINESS PROBLEMS FACED BY FIRMS.
FOR THE MANUFACTURING SECTOR, A CONSIDERABLY LARGER PROPORTION OF FIRMS INDICATED INSUFFICIENT BUSINESS CONTRACTS. AND PRICE COMPETITION FROM FIRMS IN HONG KONG AND OVERSEAS AS THEIR MAJOR PROBLEMS IN THE FIRST QUARTER.
THESE PROBLEMS ARE EXPECTED TO PERSIST IN THE NEXT QUARTER. IN THE MEANTIME, THE PROBLEMS OF QUOTA AND OTHER TRADE RESTRICTIONS AND THAT OF SHORTAGE OF LABOUR ARE EASING.
FIRMS IN THE CONSTRUCTION SECTOR STILL CONSIDER INSUFFICIENT BUSINESS CONTRACTS AND PRICE COMPETITION FROM FIRMS IN HONG KONG AS THE IR PROMINENT PROBLEMS FOR THE FIRST AND SECOND QUARTERS OF 1985.
PRICE AS FOR THE RESTAURANTS BUSINESS, INSUFFICIENT BUSINESS, COMPETITION AND HIGH STAFF TURNOVER WERE CITED AS THE MAJOR PROBLEMS FOR THE FIRST AND SECOND QUARTERS.
PRICE COMPETITION REMAINED AS THE MOST PROMINENT PROBLEM FOR FIRMS IN THE WHOLESALE, RETAIL AND IMPORT/EXPORT TRADES, HOTELS, TRANSPORT, STORAGE AND COMMUNICATION AND REAL ESTATE DEVELOPMENT AND SERVICES BUSINESSES IN THE FIRST QUARTER, WITH LITTLE PROSPECT OF EASING IN THE SECOND QUARTER.
AS FOR THE HOTEL BUSINESS, THERE WAS AN INCREASE IN THE PROPORTION OF RESPONDING FIRMS THAT CONSIDERED HIGH STAFF TURNOVER AS THEIR MAJOR PROBLEM IN THE FIRST QUARTER, ALTHOUGH THE INTENSITY OF THIS PROBLEM IS EXPECTED TO DIMINISH CONSIDERABLY IN THE SECOND QUARTER.
/HIGH STAFF