XN000022-1983-02-09 — Page 3

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WEDNESDAY, FEBRUARY 9, 1983

RESPONDING FIRMS IN THE CONSTRUCTION SECTOR EXPERIENCED A SUBSTANTIAL DETERIORATION IN BUSINESS DURING THE FOURTH QUARTER OF 1982 AND PREDICT THAT THE DOWNTREND WILL QUITE DEFINITELY CONTINUE INTO THE FIRST QUARTER OF 1983.

FIRMS IN WHOLESALE AND RETAIL TRADE REPORTED SOME IMPROVEMENT IN BUSINESS IN THE FOURTH QUARTER, BUT EXPECT A DECLINE IN BUSINESS FOR THE FIRST QUARTER.

AS FOR RESTAURANTS AND HOTELS, BUSINESS DURING THE FOURTH QUARTER IMPROVED MAINLY DUE TO SEASONAL FACTORS, BUT, A DETERIORATION IN BUSINESS IS EXPECTED BY RESPONDENTS FOR THE FIRST QUARTER.

AS REGARDS THE OTHER SERVICES SECTOR, BUSINESS EXPERIENCE OF FIRMS IN THE FOURTH QUARTER IN GENERAL FELL SHORT OF THEIR PREVIOUS EXPECTATION, PARTICULARLY FOR THE BANKS' BUSINESS, WHICH EXPERIENCED A DETERIORATION, CONTRARY TO THEIR PREVIOUS EXPECTATION OF IMPROVEMENTS.

FOR THE TRANSPORTATION BUSINESS, THE IMPROVEMENT TURNED OUT TO BE ONLY MODERATE.

LOOKING INTO THE FIRST QUARTER OF 1983, FIRMS IN THIS SECTOR EXPECT A BUSINESS LEVEL SIMILAR TO THAT IN THE FOURTH QUARTER OF 1982 TO BE MAINTAINED.

INSUFFICIENT BUSINESS ORDERS, UNCERTAINTIES IN EXCHANGE RATES AND PRICE COMPETITION FROM FIRMS IN HONG KONG WERE THE MAJOR PROBLEMS EXPERIENCED BY FIRMS IN THE MANUFACTURING SECTOR

IN GENERAL DURING THE FOURTH QUARTER OF 1982 AND THESE PROBLEMS ARE EXPECTED TO PERSIST IN THE FIRST QUARTER OF 1983.

WITHIN THE MANUFACTURING SECTOR, INSUFFICIENT BUSINESS ORDERS WAS THE MOST SIGNIFICANT PROBLEM FOR BOTH THE FOURTH QUARTER AND FIRST QUARTER. THE PROBLEM IS PARTICULARLY SERIOUS IN THE CASE OF THE FABRICATED METAL PRODUCTS AND PLASTICS INDUSTRIES.

APART FROM INSUFFICIENT BUSINESS THE WEARING APPAREL, TEXTILES, FABRICATED METAL PRODUCTS, AND ELECTRONICS INDUSTRIES ALSO FACE THE PROBLEM OF UNCERTAINTIES IN EXCHANGE RATE FLUCTUATIONS.

SHORTAGE OF SKILLED LABOUR REMAINED A PROBLEM OF THE WEARING APPAREL INDUSTRY IN THE FOURTH QUARTER AND IS EXPECTED TO PREVAIL IN THE FIRST QUARTER.

IN THE CONSTRUCTION SECTOR, THE MAJOR PROBLEMS FACED BY FIRMS WERE PRICE COMPETITION FROM LOCAL COMPANIES AND INSUFFICIENT BUSINESS CONTRACTS IN THE FOURTH QUARTER AND THEY EXPECT THESE PROBLEMS TO CONTINUE INTO THE FIRST QUARTER. IN WHOLESALE AND RETAIL TRADE, PARTICIPATING FIRMS CONSIDERED UNCERTAINTIES ARISING FROM EXCHANGE RATE FLUCTUATIONS, PRICE COMPETITION AND INSUFFICIENT BUSINESS AS THE MAJOR PROBLEMS BOTH FOR THE FOURTH AND THE FIRST QUARTERS.

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