In the third quarter, re-exports continued to register a double-digit increase. But the growth momentum of domestic exports decelerated somewhat after the upsurge earlier in the year.
It appeared that the boosting effect of the earlier depreciation of the Hong Kong dollar along with the US dollar had largely been absorbed.
Import demand in respect of raw materials and capital goods nevertheless remained strong, supported by the local industrial production and infrastructural construction activities, as well as by the robust fixed asset investment.
Tourism picked up markedly in recent months.
Concurrently, there was a continued upsurge in offshore trading activities, as evidenced by the substantial growth in transhipment flows.
Exports of other trade-related services and of various professional and business services also rose steadily.
However, local consumer spending remained subdued, amidst the prevailing weak consumer sentiment.
The setback was concentrated in higher-value items such as motor vehicles and other durable goods. Spending on ordinary consumer goods, and consumer services still showed positive growth.
The visible trade deficit has been improving since May.
Apart from reduced intake of imported consumer goods, the improvement in the deficit situation was also helped by a smaller deterioration in the terms of trade, following the rebound in the US dollar and slower increase in world commodity prices.
Trading activity in the residential property market remained generally modest.
Buying remained concentrated in the primary market, though with some early signs of a mild improvement in activity in the secondary market most recently.
Flat prices at the end of September were still around 24% lower than their peak level in April last year.
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