XN000022-1983-11-24 — Page 7

THURS Y, NOVEVER 21 1083

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WHEN JUNE 1983 IS COMPARED WITH JUNE 1982, EMPLOYMENT IN THE MANUFACTURING SECTOR SHOWED NO CHANGE WHILE EMPLOYMENT IN THE TERTIARY SERVICES SECTORS INCREASED MODERATELY BUT EMPLOYMENT ON BUILDING AND CONSTRUCTION SITES CONTINUED TO SHOW A DECLINE.

NEVERTHELESS, EMPLOYMENT IN THE MANUFACTURING SECTOR INCREASED DURING THE SECOND QUARTER OF THIS YEAR.

THE REPORT FURTHER NOTES THAT IN THE 12 MONTHS ENDING JUNE 1983, EARNINGS IN THE MANUFACTURING SECTOR, IN TERMS OF PAYROLL PER PERSON ENGAGED, INCREASED SLIGHTLY IN REAL TERMS, WHILE THOSE IN THE TERTIARY SERVICES SECTORS REMAINED RELATIVELY STABLE.

CONSTRUCTION WAGE RATES, HOWEVER, CONTINUED TO DECLINE IN REAL TERMS, ALTHOUGH THERE WAS A SMALL INCREASE IN MONEY TERMS.

THE REPORT OBSERVES THAT ON THE BASIS OF THE FIGURES ON DOMESTIC EXPORTS, RETAINED IMPORTS OF RAW MATERIALS AND SEMI- MANUFACTURES AND THE ENCOURAGING QUANTITY OF ELECTRICITY CONSUMED BY THE MANUFACTURING SECTOR, THERE IS CLEAR EVIDENCE OF A CONTINUED RECOVERY IN MANUFACTURING ACTIVITY IN THE THIRD QUARTER.

ON THE PROPERTY SECTOR, THE REPORT POINTS OUT THAT THE VACANCY POSITION FOR MOST TYPES OF PROPERTY WAS HIGH IN RELATION TO THE EXISTING STOCK.

WHILE TOTAL COMPLETIONS IN THE FIRST NINE MONTHS OF THIS YEAR WERE MORE THAN IN THE CORRESPONDING PERIOD LAST YEAR, DEMAND FOR PROPERTY REMAINED WEAK, WITH THE EXCEPTION OF SMALL DOMESTIC UNITS.

PRICES AND RENTALS OF LARGE DOMESTIC UNITS IN GENERAL EASED

FURTHER.

REFLECTING THE WEAK BUILDING INTENTIONS OF DEVELOPERS, THE TOTAL USABLE FLOOR AREA ON BUILDING PLANS WITH CONSENT TO COMMENCE WORK WAS SUBSTANTIALLY LOWER IN THE FIRST NINE MONTHS OF 1983 THAN IN THE SAME PERIOD LAST YEAR.

ON PRICES, THE REPORT COMMENTS THAT DESPITE THE DEPRECIATION OF THE HONG KONG DOLLAR SINCE THE END OF 1982, THE RATE OF INFLATION REMAINED RELATIVELY STABLE AT ABOUT 9 PER CENT.

THE REPORT ATTRIBUTES THIS TO SEVERAL FAVOURABLE FACTORS. LOCALLY, AGGREGATE DEMAND WAS NOT IMPOSING EXCESSIVE PRESSURE ON AGGREGATE SUPPLY OF DOMESTIC RESOURCES AND THE UNDERLYING GROWTH RATE OF THE MONEY SUPPLY WAS MODERATE.

EXTERNALLY, THE RATE OF INFLATION IN HONG KONG'S MAJOR TRADING PARTNERS HAS SLOWED DOWN.

THE THIRD QUARTER ECONOMIC REPORT 1983 IS NOW ON SALE AT $10 A COPY.

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