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TUESDAY, MAY 26, 1987
SECOND, HONG KONG DOLLAR DEPOSITS AND HONG KONG DOLLAR MONEY SUPPLY GREW RAPIDLY DURING THE FIRST QUARTER OF 1987, LARGELY DUE TO INCREASED DOMESTIC CREDIT CREATION. ON THE OTHER HAND, THE GROWTH RATE OF FOREIGN CURRENCY DEPOSITS SLOWED DOWN, BUT WAS STILL HIGHER THAN THE GROWTH RATE OF THE HONG KONG DOLLAR DEPOSITS.
THIRD, IN LINE WITH THE BUOYANT ECONOMIC CONDITIONS AND LOW INTEREST RATES, LOANS AND ADVANCES INCREASED AT A FASTER RATE DURING THE FIRST QUARTER OF THIS YEAR THAN DURING THE FOURTH QUARTER OF 1986.
FOURTH, REFLECTING THE MOVEMENT OF MONEY MARKET INTEREST RATES, THE HONG KONG DOLLAR DEPOSIT RATES ADMINISTERED BY THE HONG KONG ASSOCIATION OF BANKS WERE REDUCED IN MID JANUARY BUT SUBSEQUENTLY REVISED UPWARDS IN EARLY MARCH AS SPECULATIVE PRESSURES ON THE LINKED EXCHANGE RATE SYSTEM SUBSIDED.
ON THE LABOUR SECTOR, THE REPORT NOTES THAT BOTH THE UNEMPLOYMENT RATE AND THE UNDEREMPLOYMENT RATE WERE AT VERY LOW LEVELS. IF THE OLD SERIES OF LABOUR FORCE STATISTICS IS TAKEN TO BE COMPARABLE WITH THE NEW SERIES, THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE IN THE FIRST QUARTER OF 1987. AT
SINCE 2.1 PER CENT, WAS THE LOWEST QUARTERLY FIGURE RECORDED SEPTEMBER 1975 WHEN UNEMPLOYMENT STATISTICS WERE FIRST COMPILED ON A REGULAR BASIS.
REFLECTING THE STRONG DEMAND FOR LABOUR RELATIVE TO ITS SUPPLY, EARNINGS IN THE MANUFACTURING SECTOR AND IN MOST OF THE SERVICES SECTORS, IN TERMS OF PAYROLL PER PERSON ENGAGED, INCREASED SUBSTANTIALLY IN MONEY TERMS AND IN REAL TERMS DURING 1986.
THE REPORT OBSERVES THAT MANUFACTURING ACTIVITY CONTINUED TO INCREASE IN THE FOURTH QUARTER OF 1986, SO THAT FOR THE YEAR AS A WHOLE, THE QUANTITY OF MANUFACTURING OUTPUT WAS 16 PER CENT HIGHER THAN IN 1985. ALL MAJOR INDUSTRIES RECORDED INCREASES IN OUTPUT IN 1986.
ON THE PROPERTY SECTOR, THE REPORT NOTES THE FOLLOW I NG DEVELOPMENTS.
FIRST, THE PRICES AND RENTALS OF RESIDENTIAL PROPERTY PROBABLY INCREASED LESS RAPIDLY IN THE FIRST QUARTER OF 1987 THAN IN THE LATTER PART OF 1986, GIVEN THAT THE SUPPLY OF NEW FLATS WAS MORE ABUNDANT. NEVERTHELESS, TRADING IN THE RESIDENTIAL PROPERTY MARKET REMAINED ACTIVE.
/ECOND, REFLECTING ...............