XN000022-1987-05-19 — Page 13

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TUESDAY, MAY 19, 1987

FOURTH QUARTER INDUSTRIAL PRODUCTION INDEX PUBLISHED

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THE INDEX OF INDUSTRIAL PRODUCTION FOR THE FOURTH QUARTER OF 1986, AT 165.2, WAS 27.3 POINTS OR 19.8 PER CENT ABOVE THAT FOR THE SAME QUARTER OF 1985, ACCORDING TO STATISTICS RELEASED TODAY (TUESDAY) BY THE CENSUS AND STATISTICS DEPARTMENT.

COMPARED WITH THE PRECEDING QUARTER, THE INDEX SHOWED AN INCREASE OF 6.6 POINTS OR 4.2 PER CENT, DESPITE THE THIRD QUARTER IS USUALLY THE PEAK SEASON FOR MANUFACTURING ACTIVITIES.

ACCORDING TO MANUFACTURERS SURVEYED, THE UPSURGE IN THE

LEVEL OF PRODUCTION WAS LARGELY DUE TO A CONTINUED STRONG DEMAND FOR HONG KONG'S PRODUCTS IN MANY OVERSEAS MARKETS. THE DEPRECIATION OF THE HONG KONG BOLLAR IN LINE WITH THE US DOLLAR UNDER THE LINKED EXCHANGE RATE SYSTEM HELPED BOOST THE COMPETITIVENESS OF HONG KONG PRODUCTS IN MANY OVERSEAS MARKETS.

INDUSTRIES WITH THE MOST SUBSTANTIAL INCREASES IN PRODUCTION OVER THE FOURTH QUARTER OF 1985 WERE NON-ELECTRICAL MACHINERY (+33.2 PER CENT), LEATHER PRODUCTS AND FOOTWEAR (+28.8 PER CENT), PLASTIC PRODUCTS (+28.0 PER CENT), PAPER AND PAPER PRODUCTS (+26.6 PER CENT) AND TEXTILES (+26.1 PER CENT).

HOWEVER A FEW INDUSTRIES REPORTED A DECLINE IN PRODUCTION OVER THE SAME PERIOD. THESE INCLUDED BASIC METALS (−19.0 PER CENT), BEVERAGES (-2.9 PER CENT) AND TOBACCO (-1.6 PER CENT).

COMPARED WITH THE THIRD QUARTER OF 1986, INDUSTRIES WITH INCREASES IN PRODUCTION INCLUDED BASIC METALS (+29.0 PER CENT), TOBACCO (+20.9 PER CENT), AND PROFESSIONAL AND SCIENTIFIC EQUIPMENT, PHOTOGRAPHIC AND OPTICAL GOODS, WATCHES AND CLOCKS (+13.1 PER CENT).

PARTLY DUE TO SEASONAL INFLUENCE, THE INDEX OF PRODUCTION IN THE BEVERAGE INDUSTRY DROPPED RATHER SIGNIFICANTLY, BY 35.4 PER CENT, COMPARED WITH THE PRECEDING QUARTER. SOME MANUFACTURERS REPORTED A SIGNIFICANT DECREASE IN THE LOCAL PRODUCTION OF BEER AND SOFT DRINKS BECAUSE OF REDUCED DEMAND FOR THEIR OUTPUT FROM CHINA AND CHANGES IN THE FIRMS' PRODUCTION POLICIES.

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