XN000022-1984-02-20 — Page 2

NOTE TO EDITORS:

MONDAY, FEBRUARY 20, 1984

GOVERNOR LEAVING FOR PEKING ****

A FACILITY HAS BEEN ARRANGED FOR PRESS PHOTOGRAPHERS AND CAMERAMEN TO COVER THE DEPARTURE OF THE GOVERNOR, SIR EDWARD YOUDE, FOR PEKING TOMORROW (TUESDAY).

SIR EDWARD, ACCOMPANIED BY THE POLITICAL ADVISER, MR ROBIN MCLAREN, WILL BE LEAVING ON FLIGHT CA102, ETD 12.45 PM.

PLEASE ADVISE THOSE ASSIGNED TO COVER THE DEPARTURE TO ASSEMBLE AT THE PRESS CONFERENCE ROOM ON THE GROUND FLOOR OF THE AIRPORT TERMINAL BUILDING NOT LATER THAN 11.30 AM TOMORROW. GIS OFFICERS WILL BE ON HAND TO ASSIST.

BRIGHTER OUTLOOK FOR MANUFACTURERS

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AN ENCOURAGING OUTLOOK FOR MANUFACTURING FIRMS IS SHOWN IN THE LATEST QUARTERLY BUSINESS SURVEY COMPILED BY THE CENSUS AND STATISTICS DEPARTMENT.

FIRMS IN THE MANUFACTURING SECTOR CONTINUED TO EXPERIENCE AN IMPROVEMENT IN BUSINESS DURING THE FOURTH QUARTER OF 1983 - AND THIS IMPROVEMENT TURNED OUT TO BE GREATER THAN WAS EXPECTED IN THE PREVIOUS QUARTERLY SURVEY.

ABOUT 900 FIRMS FORMING A CROSS-SECTION OF THE ECONOMIC COMMUNITY WERE ASKED ABOUT THEIR PERFORMANCE IN THE LAST QUARTER OF 1983 AND THEIR EXPECTATIONS FOR THE FIRST QUARTER OF THIS YEAR.

THE PICTURE FOR THE CONSTRUCTION SECTOR, HOWEVER, WAS STILL WEAK WITH FIRMS REPORTING THAT THEY EXPECTED FURTHER DETERIORATION

IN BUSINESS.

WITH REGARD TO THE 'WHOLESALE AND RETAIL TRADE, RESTAURANTS AND HOTELS' SECTOR, SOME IMPROVEMENT IN BUSINESS WAS REPORTED WHILE A FAIRLY SIGNIFICANT EXTENT OF IMPROVEMENT IN BUSINESS WAS EXPERIENCED BY FIRMS IN THE OTHER SERVICES' SECTOR (INCLUDING BANKS. TRANSPORTATION FIRMS ETC.) WHICH LARGELY ACCORDS WITH EXPECTATIONS RECORDED IN THE LAST SURVEY.

THE BUSINESS OUTLOOK OF THE MANUFACTURING' SECTOR FOR THE FIRST QUARTER OF THIS YEAR CONTINUES TO BE FAVOURABLE, AS RESPONDENTS INDICATE THAT ON THE WHOLE THE LEVEL OF BUSINESS IN THE FOURTH QUARTER OF 1983 WILL BE MAINTAINED IN THE FIRST QUARTER. THIS SHOWS AN UNUSUAL DEGREE OF OPTIMISM BECAUSE THE FIRST QUARTER IS USUALLY A SEASONAL TROUGH, ACCORDING TO HISTORICAL EXPERIENCE.

RESPONDENTS IN THE 'WHOLESALE AND RETAIL TRADE, RESTAURANTS AND HOTELS' SECTOR EXPECT THE BUSINESS SITUATION TO REMAIN ON THE WHOLE STABLE IN THE FIRST QUARTER WHILE FIRMS IN THE 'OTHER SERVICES' SECTOR LOOK FORWARD TO CONSIDERABLE IMPROVEMENTS IN BUSINESS IN THE FIRST QUARTER.

XIN CONTRAST