XN000022-1986-05-16 — Page 8

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FRIDAY,

:.1906

FIRMS IN T-+WHOLESALE, RETAIL AND IMPORT-EXPORT TRADES AND RESTAURANTS+ SECTOR REPORTED A STABLE LEVEL OF BUSINESS IN THE FIRST QUARTER. THE HOTELS TRADE, HOWEVER, EXPERIENCED A SEASONAL DECLINE IN BUSINESS.

FIRMS IN THE WHOLESALE, RETAIL AND IMPORT-EXPORT TRADES+ EXPECT THE BUSINESS SITUATION IN THE SECOND QUARTER TO REMAIN SIMILAR TO THAT OF THE FIRST QUARTER. A SEASONAL DOWNTREND IN BUSINESS IS PREDICTED BY RESPONDENTS IN THE RESTAURANTS SECTOR. ON THE CONTRARY, FIRMS IN THE HOTELS TRADE EXPECT A SEASONAL UPTREND IN BUSINESS IN THE SECOND QUARTER.

WITH REGARD TO THE +OTHER SERVICES+ SECTOR, A GENERAL IMPROVEMENT IN BUSINESS WAS ACHIEVED BY FIRMS IN THE BANKS AND +REAL ESTATE DEVELOPMENT AND RELATED SERVICES+ SECTORS WHEREAS FIRMS IN THE TRANSPORT, STORAGE AND COMMUNICATION+ SECTOR EXPERIENCED A DETERIORATION IN BUSINESS IN THE FIRST QUARTER.

FIRMS IN THE OTHER SERVICES+ SECTOR ARE GENERALLY OPTIMISTIS ABOUT THE BUSINESS OUTLOOK FOR THE SECOND QUARTER, PARTICULARLY FOR FIRMS IN THE REAL ESTATE DEVELOPMENT AND RELATED SERVICES+,

THE SURVEY ALSO COVERED BUSINESS PROBLEMS FACED BY FIRMS.

ABOUT ONE-THIRD OF THE RESPONDENTS IN THE MANUFACTURING SECTOR INDICATED INSUFFICIENT BUSINESS ORDERS, PRICE COMPETITION FROM FIRMS IN HONG KONG AND FROM FIRMS OVERSEAS AS THE MORE SIGNIFICANT PROBLEMS IN THE FIRST QUARTER.

ALTHOUGH THE PROBLEM OF INSUFFICIENT BUSINESS ORDERS IS EXPECTED TO LEVEL OFF IN THE SECOND QUARTER, THE PROBLEM OF HIGH MATERIAL PRICES IS EMERGING AS A SIGNIFICANT PROBLEM.

FOR THE CONSTRUCTION SECTOR, INSUFFICIENT BUSINESS CONTRACTS AND PRICE COMPETITION FROM HONG KONG AND OVERSEAS FIRMS WERE REGARDED AS MAJOR PROBLEMS FOR BOTH THE FIRST AND THE SECOND QUARTERS.

AS FOR THE WHOLESALE, RETAIL AND IMPORT-EXPORT TRADES+ BUSINESS, PRICE COMPETITION WAS CONSIDERED THE MOST PROMINENT PROBLEM. THERE WAS AN INCREASE IN THE PROPORTION OF FIRMS INDICATING UNCERTAINTIES THROUGH EXCHANGE RATE FLUCTUATIONS AS A SIGNIFICANT PROBLEM IN THE FIRST QUARTER.

INSUFFICIENT BUSINESS, PRICE COMPETITION AND HIGH STAFF TURNOVER CONTINUED TO BE THE MAIN PROBLEMS FACED BY RESTAURANTS FOR THE FIRST AND THE SECOND QUARTERS.

/THE MAL