XN000022-1988-02-08 — Page 3

MONDAY, FEBRUARY 8, 1988

AS REGARDS BUSINESS PROSPECTS FOR THE FIRST QUARTER OF 1988, SOME IMPROVEMENTS IN BUSINESS ARE EXPECTED EXCEPT FOR THE WHICH THE MAJORITY OF RESPONDING FIRMS EXPECT THE BUSINESS TO REMAIN THE SAME.

BANKS, IN CONDITIONS

ABOUT 1,000

PARTICIPATED IN

FIRMS FROM VARIOUS INDUSTRIES AND BUSINESSES, FORMING A CROSS-SECTION OF THE ECONOMIC COMMUNITY, THE SURVEY AND WERE ASKED ABOUT THEIR BUSINESS EXPERIENCES AND EXPECTATIONS. THE SURVEY ALSO COVERED BUSINESS PROBLEMS FACED BY

FIRMS.

IN THE MANUFACTURING SECTOR, SHORTAGE OF LABOUR GENERALLY REMAINS A PROMINENT PROBLEM ENCOUNTERED BY A SIGNIFICANT PROPORTION OF FIRMS. HOWEVER, THE INTENSITY OF THE PROBLEM HAS BASED SOMEWHAT WHEN COMPARED TO THE POSITION IN THE PREVIOUS ROUND OF THE SURVEY.

IN ADDITION, SHORTAGE OF SKILLED LABOUR AND PRICES WERE ALSO INDICATED BY THE REPORTING FIRMS AS SIGNIFICANT PROBLEMS. THESE PROBLEMS ARE EXPECTED TO FIRST QUARTER OF 1988.

HIGH MATERIALS RELATIVELY MORR PERSIST IN THE

FIRMS IN THE

SEVERAL MAJOR PROBLEMS CONTINUED то AFFECT CONSTRUCTION SECTOR, INCLUDING PRICE COMPETITION FROM LOCAL FIRMS, GENERAL SHORTAGE OF LABOUR PARTICULARLY SHORTAGE OF SKILLED LABOUR AND HIGH WAGE RATES. THESE PROBLEMS ARE EXPECTED TO REMAIN PROMINENT IN THE FIRST QUARTER OF 1988.

SHORTAGE OF STAFF GENERALLY HAS BECOME A PREVALENT PROBLEM FOR FIRMS IN BOTH THE 'WHOLESALE, RETAIL AND IMPORT/EXPORT TRADES, RESTAURANTS AND HOTELS'

+ AND * OTHER SERVICES' SECTORS DURING THE FOURTH QUARTER OF 1987 AND IS ANTICIPATED TO REMAIN SO IN THE FIRST QUARTER OF 1988.

ALTHOUGH PRICE COMPETITION IS STILL A MAJOR PROBLEM FOR FIRMS IN THE WHOLESALE, RETAIL AND IMPORT/EXPORT TRADES' BUSINESS, IT HAS BECOME LESS SIGNIFICANT FOR THE OTHER KINDS OF SERVICES.

ON THE OTHER HAND, HIGH STAFF TURNOVER AND SHORTAGE OF EXPERIENCED STAFF ARE CONSIDERED TO BE THE RELATIVELY MORE SIGNIFICANT PROBLEMS IN THE 'RESTAURANTS AND HOTELS', 'TRANSPORT, STORAGE AND COMMUNICATION' 'BANKS' AND 'REAL ESTATE DEVELOPMENT AND RELATED SERVICES' BUSINESSES FOR THE FOURTH QUARTER OF 1987, AS WELL AS FOR THE FIRST QUARTER OF 1988.

BE IN

THE EXTENT OF THE ABOVE PROBLEMS IS EXPECTED ΤΟ SIGNIFICANTLY MORE SERIOUS IN THE FIRST QUARTER OF 1988 FOR FIRMS THE * HOTELS' SECTOR. IN ADDITION, HIGH STAFF COSTS IS ANOTHER EMERGING PROBLEM FOR HOTELS.

+

THE

SURVEY

TO

PROVIDE

CURRENT

ACCORDING TO THE CENSUS AND STATISTICS DEPARTMENT, RESULTS, OBTAINED WITH A MINIMUM TIME LAG, ARE INTENDED ONE SOURCE OF REFERENCE FOR MAKING A QUICK ASSESSMENT OF THE ECONOMIC SITUATION IN HONG KONG.

/IN THE

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