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TUESDAY, NOVEMBER 18, 1986
WITH REGARD TO THE +OTHER SERVICES+ SECTOR BOTH THE +BANKS+ AND THE +REAL ESTATE DEVELOPMENT AND RELATED SERVICES+ BUSINESSES EXPERIENCED A CONTINUED UPTREND IN BUSINESS. THE TRANSPORT, STORAGE AND COMMUNICATION+ BUSINESS ALSO EXPERIENCED SOME IMPROVEMENT IN THIS RESPECT IN THE THIRD QUARTER. ALL THREE TRADES SHARED AN OPTIMISTIC VIEW ABOUT THE BUSINESS OUTLOOK IN THE FOURTH QUARTER.
THE SURVEY ALSO COVERED BUSINESS PROBLEMS FACED BY FIRMS.
FOR THE MANUFACTURING SECTOR, HIGH MATERIAL PRICES AND PRICE COMPETITION FROM FIRMS IN HONG KONG CONTINUED TO BE RATHER IMPORTANT PROBLEMS IN THE THIRD QUARTER AND ARE EXPECTED TO REMAIN PROMINENT IN THE FOURTH QUARTER.
WHILE THE PROBLEMS OF PRICE COMPETITION FROM FIRMS OVERSEAS AND UNCERTAINTIES THROUGH EXCHANGE RATE FLUCTUATIONS HAD BECOME LESS EXTENSIVE, THERE WAS A GRADUALLY INCREASING NUMBER OF FIRMS REPORTING A SHORTAGE OF SKILLED LABOUR AS A MAJOR PROBLEM,
AS FOR THE CONSTRUCTION SECTOR, THERE WAS A CHARACTERISTICALLY HIGH PROPORTION OF FIRMS QUOTING PRICE COMPETITION FROM FIRMS IN HONG KONG AS A SIGNIFICANT PROBLEM FOR BOTH THE THIRD AND FOURTH QUARTERS. THE PROBLEM OF PRICE COMPETITION FROM FIRMS OVERSEAS ALSO REMAINED EXTENSIVE AMONG CONSTRUCTION FIRMS.
AS FOR THE WHOLESALE, RETAIL AND IMPORT-EXPORT TRADES+ BUSINESS, PRICE COMPETITION CONTINUED TO BE THE MOST PROMINENT PROBLEM FACED IN THE THIRD QUARTER. FIRMS ALSO CONSIDERED UNCERTAINTIES THROUGH EXCHANGE RATE FLUCTUATIONS AS A SIGNIFICANT PROBLEM. BOTH OF THESE ARE EXPECTED TO PREVAIL IN THE FOURTH QUARTER.
RESTAURANTS AND HOTELS BUSINESSES WERE AFFECTED EXTENSIVELY BY THE CONTINUOUS PROBLEMS OF PRICE COMPETITION AND HIGH STAFF COSTS. WHILE RESTAURANTS REPORTED INSUFFICIENT BUSINESS AS A SIGNIFICANT PROBLEM, THIS PROBLEM WAS NOT CONSIDERED SERIOUS BY HOTELS IN THE THIRD QUARTER.
AS FOR THE OTHER SERVICES+ SECTOR, PRICE COMPETITION WAS A MAJOR PROBLEM SHARED BY THE +TRANSPORT, STORAGE AND COMMUNICATION+, +BANKS✦ AND +REAL ESTATE DEVELOPMENT AND RELATED SERVICES+ TRADES.
IN ADDITION, BANKS STARTED TO INDICATE UNCERTAINTIES THROUGH EXCHANGE RATE FLUCTUATIONS IN THE THIRD QUARTER.
THE REAL ESTATE DEVELOPMENT AND RELATED SERVICES+ TRADE CONTINUED TO BE AFFECTED BY THE PROBLEM OF HIGH STAFF COSTS IN THE THIRD QUARTER,
ACCORDING TO THE CENSUS AND STATISTICS DEPARTMENT, THE SURVEY RESULTS, OBTAINED WITH A MINIMUM TIME LAG, ARE INTENDED TO PROVIDE A SOURCE OF REFERENCE FOR MAKING A QUICK ASSESSMENT OF THE CURRENT ECONOMIC SITUATION OF HONG KONG.