XN000022-1977-03-06 — Page 4

SUNDAY, MARCH 6, 1977

SURVEY ON H.K.'S ECONOMIC PROSPECTS FOR 1977

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A RECENT SURVEY ON HONG KONG'S ECONOMIC PROSPECTS SHOWED THAT THE OVERALL OVERSEAS DEMAND FOR HONG KONG'S MANUFACTURED PRODUCTS WAS EXPECTED TO INCREASE BY ABOUT EIGHT PER CENT IN REAL TERMS IN 1977.

THE SURVEY, CONDUCTED BY THE CENSUS AND STATISTICS DEPARTMENT, WAS DESIGNED TO COLLECT OPINIONS FROM MANUFACTURERS ON THE BUSINESS PROSPECTS FOR THIS YEAR.

THE STUDY COVERED 752 ESTABLISHMENTS EACH OF WHICH ENGAGED 20 OR MORE PERSONS, THEY WERE RANDOMLY SELECTED FROM 10 MAJOR MANUFACTURING INDUSTRIES AND WITH EMPHASIS ON LARGER CONCERNS.

MANUFACTURERS WERE OPTIMISTIC ON THE UNITED STATES MARKET, THE EXPECTED INCREASE IN REAL DEMAND BEING 14 PER CENT OVER THE PRECEDING YEAR, MARKET PROSPECTS IN THE UNITED KINGDOM APPEARED LESS FAVOURABLE AND THE VOLUME OF EXPORTS TO THIS DESTINATION MIGHT REGISTER A DECLINE. ON THE OTHER HAND, PROSPECTIVE SALES TO WEST GERMANY WOULD PROBABLY REMAIN AT ROUGHLY THE SAME LEVEL AS THAT OF 1976.

MOST MANUFACTURERS WERE APPARENTLY NOT INCLINED TO RAISE THEIR PRICE QUOTATIONS BEYOND A SMALL MARGIN. CONCURRENTLY, MANUFACTURERS DID NOT FORESEE ANY SIGNIFICANT INCREASE IN PRICES OF MOST RAW MATERIALS OR IN WAGE RATES.

AS REGARDS INVESTMENT, THE INCREASE IN PRODUCTION CAPACITY AND FACTORY SPACE PLANNED FOR 1977 WOULD PROBABLY BE LESS THAN THAT ACHIEVED IN 1976. NEVERTHELESS, THE EXPECTED RATE OF 11 PER CENT FOR EXPANSION IN PRODUCTION CAPACITY AND EIGHT PER CENT IN FACTORY SPACE WERE STILL IMPRESSIVE.

ENQUIRIES CONCERNING THE RESULTS OF THE SURVEY MAY BE MADE TO THE INDUSTRIAL PRODUCTION STATISTICS SECTION (TEL. 5-444734) OF THE CENSUS AND STATISTICS DEPARTMENT.