XN000022-1982-11-22 — Page 3

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MONDAY, NOVEMBER 22, 1982

A DETERIORATION IN BUSINESS WAS REPORTED BY FIRMS IN THE 'PRINTING', 'FABRICATED METAL PRODUCTS', AND ELECTRICAL MACHINERY, APPLIANCES AND SUPPLIES' INDUSTRIES IN THE 3RD QUARTER AND THEY EXPECT THE DOWNTREND TO CONTINUE INTO THE 4TH QUARTER.

THE 'ELECTRONICS' INDUSTRY, WHICH REPORTED NO IMPROVEMENT IN THE 3RD QUARTER, ALSO PREDICT DÉTERIORATIONS FOR THE 4TH QUARTER.

RESPONDENTS IN THE CONSTRUCTION' SECTOR REPORTED A RATHER SIGNIFICANT DECLINE IN BUSINESS DURING THE 3RD QUARTER AND EXPECT FURTHER DETERIORATIONS FOR THE 4TH QUARTER.

FIRMS IN THE "WHOLESALE AND RETAIL TRADE' AND 'HOTELS' BUSINESS EXPERIENCED A DECLINE IN BUSINESS DURING THE 3RD QUARTER. HOWEVER, AN IMPROVEMENT IN BUSINESS IS EXPECTED BY THESE FIRMS FOR THE 4TH QUARTER.

AS FOR 'RESTAURANTS' BUSINESS DURING THE 3RD QUARTER IMPROVED AND FURTHER IMPROVEMENT IS EXPECTED FOR THE 4TH QUARTER.

AS REGARDS THE OTHER SERVICES' SECTOR, PARTICIPATING FIRMS REPORTED A SIMILAR BUSINESS SITUATION FOR THE 3RD QUARTER AS COMPARED TO THE 2ND QUARTER. HOWEVER, A SIGNIFICANT UPTURN FOR THE 4TH QUARTER IS EXPECTED.

IN GENERAL, INSUFFICIENT BUSINESS ORDERS OR CONTRACTS, EXCHANGE RATE UNCERTAINTIES AND PRICE COMPETITION AMONG FIRMS IN HONG KONG WERE CITED AS THE MAJOR PROBLEMS BY FIRMS IN THE 'MANUFACTURING' SECTOR IN THE 3RD QUARTER. THESE PROBLEMS ARE EXPECTED TO PERSIST IN THE 4TH QUARTER.

WHEN COMPARED WITH THE 2ND QUARTER, THERE WAS A SIGNIFICANT INCREASE IN THE NUMBER OF FIRMS INDICATING EXCHANGE RATE UNCERTAINTIES AND HIGH MATERIAL PRICES AS THEIR MAJOR PROBLEMS IN THE 3RD AND 4TH QUARTERS. HOWEVER, HIGH INTEREST RATES HAVE BECOME A LESS PROMINENT PROBLEM IN THE 3RD QUARTER.

IN THE 'CONSTRUCTION' SECTOR, PRICE COMPETITION FROM FIRMS IN HONG KONG REMAINED THE MOST SIGNIFICANT PROBLEM IN THE 3RD QUARTER AND THIS IS EXPECTED TO CONTINUE INTO THE 4TH QUARTER. FIRMS ALSO EXPECT THE PROBLEM OF INSUFFICIENT BUSINESS CONTRACTS TO CONTINUE INTO THE 4TH QUARTER.

AS REGARDS THE 'WHOLESALE AND RETAIL TRADE, PRICE COMPETITION, INSUFFICIENT BUSINESS AND EXCHANGE RATE UNCERTAINTIES WERE THE MAJOR PROBLEMS FOR BOTH THE 3RD AND THE 4TH QUARTERS.

WHILE RESPONDENTS FROM THE 'RESTAURANTS' BUSINESS CONTINUED TO FACE THE PROBLEM OF HIGH STAFF TURNOVER, FIRMS FROM THE HOTELS' BUSINESS EXPERIENCED THE PROBLEM OF PRICE COMPETITION.

/AS FOR