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TUESDAY, AUGUST 27, 1985
THE REPORT FURTHER SAYS THAT DURING THE 12 MONTHS ENDING MARCH 1985, EARNINGS IN THE MANUFACTURING SECTOR, IN TERMS OF PAYROLL PER PERSON ENGAGED, INCREASED BOTH IN MONEY TERMS AND IN REAL TERMS, ALBEIT AT A LESS RAPID RATE, REFLECTING THE ADVERSE EFFECTS OF THE WEAK DOMESTIC EXPORT PERFORMANCE ON INCOMES.
EARNINGS IN THE SERVICES SECTORS, ON THE OTHER HAND, SHOWED SUBSTANTIAL INCREASES, LARGELY DUE TO THE SALARY INCREASES BROUGHT BY THE BUOYANT ECONOMIC CONDITIONS IN 1984. CONSTRUCTION WAGE RATES SHOWED SOME INCREASE IN MONEY TERMS, AND CEASED TO DECLINE IN REAL TERMS.
THE REPORT OBSERVES THAT THE SLOWING DOWN IN MANUFACTURING ACTIVITY CONTINUED INTO THE SECOND QUARTER OF THIS YEAR, AS EVIDENCED BY THE FIGURES ON DOMESTIC EXPORTS, THE ORDER-BOOK POSITION OF A SELECTION OF LARGE MANUFACTURERS, RETAINED IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURES, AND ELECTRICITY CONSUMPTION BY THE INDUSTRIAL SECTOR.
ON THE PROPERTY SECTOR, THE REPORT NOTES THE FOLLOWING TRENDS:
FIRST, THE PROPERTY MARKET SHOWED CLEAR SIGNS OF RECOVERY UPON A RETURN OF CONFIDENCE FOLLOWING THE INITIALLING OF THE SINO-BRITISH AGREEMENT IN SEPTEMBER 1984.
SECOND, THE RATE OF TAKE-UP FOR MOST TYPES OF FINISHED PROPERTY IMPROVED IN THE FIRST HALF OF 1985 AND VACANCY RATES FOR ALL MAIN TYPES OF PROPERTY FELL.
THIRD, PRICES AND RENTALS OF RESIDENTIAL FLATS, PARTICULARLY MEDIUM AND LARGE ONES IN WELL-MANAGED DEVELOPMENTS AND FAVOURED LOCATIONS, INCREASED.
FOURTH, THE DEMAND FOR BETTER-MANAGED ARCADE SHOPS AND OFFICES IN PRIME LOCATIONS REMAINED FAIRLY STRONG IN THE FIRST HALF OF 1985. THE PERSISTANT FALL IN PRICES AND RENTALS OF SHOPS THROUGHOUT 1984 APPEARED TO HAVE HALTED IN THE FIRST QUARTER OF THIS YEAR.
FIFTH, THE INCREASE IN DEMAND FOR INDUSTRIAL PROPERTY APPARENTLY CONTINUED INTO THE FIRST HALF OF 1985. WHILE PRICES OF INDUSTRIAL PROPERTY APPEARED TO HAVE INCREASED SLIGHTLY, RENTALS SHOWED CLEAR SIGNS OF AN UPTREND SINCE THE BEGINNING OF THIS YEAR.
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ON PRICES, THE REPORT SAYS THAT THE STEADY DECELERATION IN THE RATE OF INFLATION WAS DUE TO A NUMBER OF FAVOURABLE DOMESTIC AND EXTERNAL FACTORS. FOR EXAMPLE, AGGREGATE DEMAND IN THE ECONOMY WAS NOT PARTICULARLY STRONG, THE HONG KONG DOLLAR STRENGTHENED AGAINST THE CURRENCIES OF HONG KONG'S MAJOR SUPPLIER COUNTRIES, THE RATES OF INFLATION IN HONG KONG'S MAJOR TRADING PARTNERS REMAINED MODERATE, AND WORLD COMMODITY PRICES WERE RELATIVELY SOFT.
THE REPORT IS NOW ON SALE AT 12 A COPY.
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