XN000022-1987-02-16 — Page 3

MONDAY, FEBRUARY 16, 1987

QUARTERLY BUSINESS SURVEY RESULTS RELEASED

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FIRMS IN THE MANUFACTURING SECTOR EXPERIENCED AN IMPROVEMENT IN GENERAL BUSINESS IN THE FOURTH QUARTER AS COMPARED WITH THE THIRD QUARTER OF 1986, ACCORDING TO SURVEY RESULTS RELEASED TODAY (MONDAY) BY THE CENSUS AND STATISTICS DEPARTMENT.

HOWEVER, BECAUSE OF SEASONAL FACTORS AND THE FACT THAT BUSINESS PERFORMANCE IN THE FOURTH QUARTER OF 1986 WAS PARTICULARLY STRONG, MANUFACTURING FIRMS EXPECT THAT THE BUSINESS SITUATION IN THE FIRST QUARTER OF 1987 WILL NOT BE AS GOOD AS IN THE FOURTH QUARTER.

FIRMS IN THE CONSTRUCTION SECTOR REPORTED A CONTINUED UPTREND IN BUSINESS DURING THE FOURTH QUARTER OF 1986 AND THE BUSINESS SITUATION IS EXPECTED TO IMPROVE FAVOURABLY IN THE FIRST QUARTER OF THIS YEAR.

THE MAJORITY OF FIRMS IN THE WHOLESALE, RETAIL AND IMPORT- EXPORT TRADES, RESTAURANTS AND HOTELS SECTOR INDICATED THAT THE GENERAL BUSINESS SITUATION HAD IMPROVED IN THE FOURTH QUARTER. AS REGARDS BUSINESS PROSPECTS IN THE FIRST QUARTER OF 1987, OPINION OF FIRMS ARE DIVIDED, BUT ON BALANCE THEY EXPECT THE BUSINESS SITUATION TO REMAIN STABLE.

BANKS AND FIRMS IN THE REAL ESTATE DEVELOPMENT AND RELATED SERVICES BUSINESS REPORTED AN IMPROVEMENT IN BUSINESS SITUATION IN THE FOURTH QUARTER AND EXPECT THE BUSINESS CONDITION TO IMPROVE FURTHER IN THE FIRST QUARTER OF 1987.

THE EXTENT OF IMPROVEMENT HAS BEEN PARTICULARLY SIGNIFICANT IN THE CASE OF THE BANKS.

FIRMS IN THE TRANSPORT, STORAGE AND COMMUNICATION BUSINESS ALSO INDICATED THAT THE GENERAL BUSINESS SITUATION HAD IMPROVED IN THE FOURTH QUARTER. HOWEVER, SOME DETERIORATION IN BUSINESS IS EXPECTED FOR THE FIRST QUARTER OF 1987.

ABOUT 1 000 FIRMS FROM VARIOUS INDUSTRIES AND BUSINESSES FORMING A CROSS-SECTION OF THE ECONOMIC COMMUNITY, PARTICIPATED IN THE SURVEY AND WERE ASKED ABOUT THEIR BUSINESS EXPERIENCES AND EXPECTATIONS.

WITHIN THE MANUFACTURING SECTOR, ALL INDUSTRIES, WITH THE EXCEPTION OF THE PLASTICS INDUSTRY ACHIEVED IMPROVEMENTS IN BUSINESS IN THE FOURTH QUARTER. IMPROVEMENTS IN BUSINESS WERE PARTICULARLY REMARKABLE IN THE CASE OF THE WEARING APPAREL, FABRICATED METAL PRODUCTS, ELECTRONICS, AND WATCHES AND CLOCKS INDUSTRIES.

/REGARDING BUSINESS