XN000022-1984-11-22 — Page 5

THURSDAY, NOVEMBER 22, 1984

DURING THE THIRD QUARTER, A GENERAL IMPROVEMENT IN BUSINESS WAS EXPERIENCED BY FIRMS IN ALL MANUFACTURING INDUSTRIES EXCEPT THE TEXTILES' INDUSTRY, FOR WHICH THE BUSINESS SITUATION REMAINED LARGELY STABLE.

IN THE 'FOOD, BEVERAGE AND TOBACCO' 'PLASTICS', 'ELECTRONICS' AND "WATCHES AND CLOCKS INDUSTRIES, RESPONDING FIRMS EXPERIENCED PARTICULARLY SUBSTANTIAL IMPROVEMENT IN BUSINESS AS COMPARED WITH THOSE IN OTHER MANUFACTURING INDUSTRIES.

FIRMS IN THE OTHER MANUFACTURING INDUSTRIES WHICH INCLUDE THE 'WEARING APPAREL ' 'PRINTING'. 'FABRICATED METAL PRODUCTS' AND 'ELECTRICAL MACHINERY. APPLIANCES AND SUPPLIES' INDUSTRIES EXPERIENCED MODERATE IMPROVEMENTS IN BUSINESS FOR THE THIRD QUARTER.

AS REGARDS BUSINESS EXPECTATIONS FOR THE FOURTH QUARTER, FIRMS IN THE 'PRINTING', 'ELECTRICAL MACHINERY, APPLIANCES AND SUPPLIES AND WATCHES AND CLOCKS INDUSTRIES FORESEE A FURTHER IMPROVEMENT IN BUSINESS, WITH FIRMS IN THE 'PRINTING INDUSTRY BEING PARTICULARLY OPTIMISTIC ABOUT THE BUSINESS OUTLOOK.

RESPONDENTS IN THE 'FOOD, BEVERAGE AND TOBACCO' AND 'PLASTICS' INDUSTRIES, HOWEVER, EXPECT A DECLINE IN BUSINESS.

FIRMS IN OTHER MANUFACTURING INDUSTRIES EXPECT THE BUSINESS SITUATION TO REMAIN LARGELY STABLE FOR THE FOURTH QUARTER.

IN THE THIRD QUARTER, A MILD DECLINE IN BUSINESS WAS EXPERIENCED BY FIRMS IN THE HOTEL BUSINESS, BUT AN UPTURN IN BUSINESS IS FORESEEN IN THE FOURTH QUARTER DUE MAINLY TO SEASONAL FACTORS.

THE SURVEY ALSO COVERED BUSINESS PROBLEMS FACED BY DIFFERENT SECTORS,

FOR THE 'MANUFACTURING' SECTOR, THE PROMINENCE OF THE PROBLEM OF HIGH MATERIAL PRICES DECLINED CONSIDERABLY IN THE THIRD QUARTER, AS COMPARED WITH THE SECOND QUARTER. ON THE OTHER HAND, THERE WAS AN INCREASING PROPORTION OF MANUFACTURING FIRMS WITH SHORTAGE OF SKILLED LABOUR AS A MAIN PROBLEM,

AS REGARDS FIRMS IN THE 'CONSTRUCTION' SECTOR, INSUFFICIENT BUSINESS CONTRACTS AND PRICE COMPETITION FROM FIRMS IN HONG KONG CONTINUED TO BE THE MAIN PROBLEMS IN THE THIRD QUARTER, WITH LITTLE PROSPECT OF ANY EASING IN THE FOURTH QUARTER.

ON THE OTHER HAND, THE INTENSITY OF THE PROBLEM OF HIGH INTEREST RATES, WHICH HAD AFFECTED FIRMS IN THE MANUFACTURING' AND 'CONSTRUCTION' SECTORS AND THE 'RESTAURANTS' BUSINESS IN THE SECOND QUARTER, EASED CONSIDERABLY IN THE THIRD QUARTER.

FOR THE