XN000022-1975-08-27 — Page 3

N

WEDNESDAY, AUGUST 27, 1975

IN THE FIRST QUARTER OF THE YEAR THE NUMBER OF PEOPLE EMPLOYED IN MANUFACTURING ESTABLISHMENTS REGISTERED OR RECORDED WITH THE LABOUR DEPARTMENT WAS 522,563, EIGHT PER CENT DOUN ON A YEAR EARLIER, BUT ONLY ONE PER CENT BELOW THE LEVEL IN THE PREVIOURS QUARTER.

THE REPORT NOTES THAT THIS TENDS TO SUGGEST THAT THE DECLINE IN EMPLOYMENT IN MANUFACTURING INDUSTRIES MAY HAVE COME TO AN END.

AT THE SAME TIME, THE RESULTS OF THE MONTHLY SURVEY CONDUCTED BY THE CENSUS AND STATISTICS DEPARTMENT AMONG 200 LARGE FIRMS INDICATED STABILITY IN MANUFACTURING EMPLOYMENT AND AN INCREASE OF 13 PER CENT IN ORDERS-ON-HAND BETWEEN THE FIRST AND SECOND QUARTERS THIS YEAR,

THE REPORT SAYS THAT DURING THE SECOND QUARTER THERE HAVE ALSO BEEN REPORTS FROM INDUSTRY TO SUGGEST THAT A NUMBER OF FIRMS HAVE RESUMED A FULL WORK-WEEK, INCREASED SHIFT WORKING AND HAVE TAKEN ON ADDITIONAL WORKERS AGAIN.

AGAINST THE BACKGROUND OF A SLACK LABOUR MARKET, MANUFACTURING WAGE RATES REMAINED UNCHANGED BETWEEN THE FIRST QUARTERS OF 1974 AND 1975. THIS IS A REFLECTION OF THE FACT THAT UAGE RATES IN HONG KONG ARE LARGELY DETERMINED BY THE DEMAND FOR AND THE SUPPLY OF LABOUR.

CONSUMERS' EXPENDITURE, HOWEVER, IS NOW BENEFITTING FROM THE STABILITY OF CONSUMER PRICES, THE REPORT ADDS.

IT SAYS THAT, AFTER INCREASING RAPIDLY IN 1973 AND EARLY 1974, CONSUMER PRICES HAVE INCREASED BY LESS THAN TWO PER CENT OVER THE YEAR TO THE SECOND QUARTER. THIS REFLECTS A GENERAL EASING IN IMPORT PRICES IN RESPONSE TO THE REDUCTION IN WORLD DEMAND AND THE ADSENCE OF INTERNALLY GENERATED INFLATION IN HONG KONG.

IN THE PROPERTY SECTOR, THE REPORT NOTES THAT ACTIVITY IN THE BUILDING AND CONSTRUCTION INDUSTRY HAS BEEN DECLINING FOR SOME TIME, AS THE RISING TREND IN THE REAL VALUE OF EXPENDITURE THROUGH THE PUBLIC WORKS PROGRAMME HAS BEEN MORE THAN OFFSET BY A DECLINE IN PRIVATE SECTOR ACTIVITY.

HOWEVER, THE NUMBER OF PLANS FOR PRIVATE NEW BUILDINGS SUBMITTED FOR APPROVAL, THOUGH STILL AT A RELATIVELY LOW LEVEL, HAS STEADILY INCREASED SINCE THE BEGINNING OF THIS YEAR AND IN THE SECOND QUARTER WAS 17 PER CENT HIGHER THAN A YEAR EARLIER.

+THIS MAY WELL PROVE TO BE AN EARLY INDICATOR OF A RECOVERY IN THE BUILDING AND CONSTRUCTION INDUSTRY, THE REPORT ADDS.

IN THE SECTION ON MONEY AND FOREIGN EXCHANGE MARKETS, THE REPORT SAYS THAT, DESPITE LOWER INTEREST RATES, THERE HAS BEEN A CONTINUING INCREASE IN TOTAL BANK DEPOSITS SINCE THE BEGINJING OF THE YEAR.

BANKS' ADVANCES