XN000022-1985-05-23 — Page 4

23. 1985

THE REPORT FURTHER SAYS THAT EARNINGS IN THE MANUFACTUR MUS SECTOR, IN TERMS OF PAYROLL PER PERSON ENGAGED, INCREASED BOTH IN MONEY TERMS AND IN REAL TERMS DURING THE TWELVE MONTHS ENDING DECEMBER 1984, AS DID THOSE IN THE SERVICES SECTORS.

CONSTRUCTION WAGE RATES, ON THE OTHER HAND, FELL IN REAL TERMS, ALTHOUGH THERE WAS A SMALL INCREASE IN MONEY TERMS.

THE REPORT OBSERVES THAT THERE WAS SOME SLOWING DOWN 1N MANUFACTURING ACTIVITY IN THE FIRST QUARTER OF THIS YEAR, AS EVIDENCED BY THE FIGURES ON DOMESTIC EXPORTS AND ON RETAINED IMPORTS OF RAW MATERIALS AND SEMI-MANUFACTURES.

ON THE PROPERTY SECTOR, THE REPORT NOTES THE FOLLOWING TRENDS:

* FIRST, THE RATE OF TAKE-UP FOR MOST TYPES OF

FINISHED PROPERTY IMPROVED OR REMAINED AT A REASONABLY HIGH LEVEL IN 1984 AND VACANCY RATES FOR ALL MAIN TYPES OF PROPERTY FELL DURING 1984, PARTICULARLY FOR OFFICES AND FLATTED FACTORIES:

*

*

SECOND, PRICES AND RENTALS IN CERTAIN SECTORS APPEARED TO HAVE INCREASED SLIGHTLY SINCE MID-1984;

THIRD, THERE WERE REPORTS OF GOOD CONSUMER RESPONSE TO THE MARKETING OF SMALLER DOMESTIC UNITS IN WELL-LOCATED AND BETTER-PLANNED DEVELOPMENTS, PRESUMABLY BECAUSE REASONABLE PRICING HAD MADE THE PURCHASE OF SUCH FLATS MORE AFFORDABLE TO INTENDING OWNER-OCCUPIERS AND BECAUSE MORE FAVOURABLE FINANCING PACKAGES WERE BEING OFFERED BY SOME DEVELOPERS. THE RENTAL MARKET FOR LARGE DOMESTIC FLATS WAS ALSO REPORTED TO BE QUITE ACTIVE

AND

* FOURTH, THE DEMAND FOR BETTER-MANAGED ARCADE

SHOPS AND OFFICES IN PRIME LOCATIONS CONTINUED TO BE STRONG, AS STIMULATED BY A FAIRLY OPTIMISTIC ECONOMIC OUTLOOK AND THE OFFER OF REALISTIC RENTALS.

ON PRICES, THE REPORT SAYS THAT THE DECELERATION IN THE RATE OF INFLATION WAS DUE TO A NUMBER OF FAVOURABLE DOMESTIC AND EXTERNAL FACTORS. FOR EXAMPLE, AGGREGATE DEMAND IN THE ECONOMY WAS NOT PARTICULARLY STRONG, THE HONG KONG DOLLAR STRENGTHENED AGAINST THE CURRENCIES OF HONG KONG'S MAJOR SUPPLIER COUNTRIES, AND THE RATES OF INFLATION IN HONG KONG'S MAJOR TRADING PARTNERS REMAINED AT RELATIVELY LOW LEVELS.

THE FIRST QUARTER ECONOMIC REPORT 1985 IS ON SALE AT $6 A COPY.