XN000022-1989-08-14 — Page 11

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MONDAY, AUGUST 14, 1989

WITHIN THE MANUFACTURING SECTOR, FIRMS IN THE FABRICATED METAL PRODUCTS INDUSTRY EXPERIENCED A LEVEL OF BUSINESS SIMILAR TO THAT OF THE FIRST QUARTER, IN CONTRAST TO THEIR EXPECTATION FOR IMPROVEMENT IN BUSINESS IN THE SECOND QUARTER AS RECORDED IN THE PREVIOUS QUARTER SURVEY.

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FIRMS IN ALL OTHER INDUSTRIES REPORTED AN IMPROVEMENT IN BUSINESS IN THE SECOND QUARTER, PARTICULARLY FOR FIRMS IN THE TEXTILES, PLASTICS AND ELECTRICAL MACHINERY AND APPLIANCES INDUSTRIES.

WITH THE EXCEPTION OF FIRMS IN THE PRINTING INDUSTRY, WHICH EXPECT A STABLE LEVEL OF BUSINESS IN THE THIRD QUARTER, FIRMS IN THE OTHER MANUFACTURING INDUSTRIES, PARTICULARLY FIRMS IN THE PLASTICS AND ELECTRONICS INDUSTRIES, ANTICIPATE A FURTHER INCREASE IN BUSINESS IN THE THIRD QUARTER.

ALTHOUGH FIRMS IN THE CONSTRUCTION SECTOR EXPERIENCED A CONTINUED IMPROVEMENT IN BUSINESS IN THE SECOND QUARTER, A DECLINE IN BUSINESS IS EXPECTED FOR THE THIRD QUARTER.

FIRMS IN THE DISTRIBUTIVE AND CATERING TRADES SECTOR, PARTICULARLY RESTAURANTS, EXPERIENCED A DECLINE IN BUSINESS TN THE SECOND QUARTER.

THE BUSINESS EXPERIENCE OF FIRMS IN THE WHOLESALE, RETAIL AND IMPORT/EXPORT TRADES AND HOTELS BUSINESS TURNED OUT TO BE QUITE DIFFERENT FROM THEIR PREVIOUS QUARTER EXPECTATION FOR AN IMPROVEMENT IN BUSINESS IN THE SECOND QUARTER.

AS REGARDS THE BUSINESS OUTLOOK FOR THE THIRD QUARTER, HOTELS ANTICIPATE A FURTHER DECREASE IN BUSINESS, WHILE THE OTHER FIRMS IN THIS SECTOR EXPECT A MORE FAVOURABLE BUSINESS SITUATION.

IN THE OTHER SERVICES SECTOR, WHILE FIRMS IN THE TRANSPORT, STORAGE AND COMMUNICATION SERVICES RECORDED A RATHER STABLE LEVEL OF BUSINESS IN THE SECOND QUARTER. THE OTHER FIRMS IN THIS SECTOR (WHICH INCLUDE THE BANKS, REAL ESTATE DEVELOPMENT AND RELATED SERVICES AND MISCELLANEOUS BUSINESS SERVICES) EXPERIENCED AN IMPROVEMENT IN BUSINESS IN GENERAL.

AS REGARDS THE THIRD QUARTER, WHILE THE BANKS EXPECT A DETERIORATION IN BUSINESS, THE OTHER FIRMS IN THIS SECTOR ANTICIPATE A MILD INCREASE IN BUSINESS.

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

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ALTHOUGH THE PROBLEMS OF SHORTAGE OF LABOUR GENERALLY SHORTAGE OF SKILLED LABOUR REMAINED WIDESPREAD AMONG FIRMS IN MANUFACTURING SECTOR IN THE SECOND QUARTER, THE SIGNIFICANCE OF THESE PROBLEMS HAD DIMINISHED.

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