XN000022-1989-11-13 — Page 12

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MONDAY, NOVEMBER 13, 1989

FIRMS IN THE CONSTRUCTION SECTOR EXPERIENCED A STABLE SITUATION IN THE THIRD QUARTER IN CONTRAST TO THE EXPECTATION DECLINE IN BUSINESS RECORDED IN THE PREVIOUS ROUND OF SURVEY.

FOR

THE

BUSINESS

FOR A

FOURTH QUARTER.

AS REGARDS BUSINESS OUTLOOK CONSTRUCTION FIRMS IN GENERAL LOOK FORWARD TO SOME IMPROVEMENT IN BUSINESS.

AS FOR THE DISTRIBUTIVE AND CATERING TRADES SECTOR. FIRMS IN THE WHOLESALE. RETAIL AND IMPORT/EXPORT TRADES AND RESTAURANTS SECTOR EXPERIENCED AN IMPROVEMENT IN BUSINESS IN THE THIRD QUARTER WHEREAS HOTELS REPORTED A DETERIORATION.

IN REGARD TO THE BUSINESS EXPECTATION FOR THE FOURTH QUARTER, FIRMS IN THIS SECTOR ANTICIPATE A FAVOURABLE DUSINESS OUTLOOK.

THE

IN THE OTHER SERVICES SECTOR. WHILE BANKS AND FIRMS IN TRANSPORT. STORAGE AND COMMUNICATION SERVICES RECORDED AN IMPROVEMENT IN BUSINESS IN THE THIRD QUARTER. THE OTHER FIRMS (WHICH INCLUDE REAL ESTATE DEVELOPMENT AND RELATED SERVICES AND MISCELLANEOUS BUSINESS SERVICES EXPERIENCED A STABLE BUSINESS SITUATION,

AS REGARDS BUSINESS EXPECTATIONS FOR THE FOURTH QUARTER. WHILE BANKS AND FIRMS IN THE MISCELLANEOUS BUSINESS SERVICES ANTICIPATE AN IMPROVEMENT IN BUSINESS FOR THE FOURTH QUARTER. THE OTHER FIRMS IN THIS SECTOR EXPECT A STABLE BUSINESS SITUATION.

AND BUSINESSES.

ABOUT 1.000 FIRMS FROM VARIOUS INDUSTRIES FORMING A CROSS-SECTION OF THE BUSINESS COMMUNITY. PARTICIPATED IN THE SURVEY. THEY WERE ASKED ABOUT THEIR BUSINESS EXPERIENCES AND EXPECTATIONS. AS WELL AS THE BUSINESS PROBLEMS THEY FACED.

SHORTAGE OF SKILLED LABOUR AND SHORTAGE OF LABOUR GENERALLY REMAINED A WIDESPREAD PROBLEM FOR FIRMS IN THE MANUFACTURING SECTOR IN THE THIRD QUARTER AND THIS SITUATION IS EXPECTED ΤΟ CONTINUE THE FOURTH QUARTER.

IN

OF

IN THE CONSTRUCTION SECTOR. FIRMS WERE AFFECTED BY SHORTAGE SKILLED AND GENERAL LABOUR. PRICE COMPETITION FROM LOCAL FIRMS IN HONG KONG AND HIGH WAGE RATES IN THE THIRD QUARTER. THESE PROBLEMS ARE EXPECTED TO PERSIST IN THE FOURTH QUARTER.

A

SIGNIFICANT PROPORTION ог FIRMS IN THE DISTRIBUTIVE AND CATERING TRADES SECTOR AND OTHER SERVICES SECTOR WERE STILL AFFECTED BY SHORTAGE OF STAFF AND HIGH STAFF TURNOVER IN THE THIRD QUARTER AND THESE PROBLEMS ARE EXPECTED TO CONTINUE IN THE FOURTH QUARTER.

IN ADDITION. FIRMS IN THE HOTELS INDUSTRY CONTINUED TO BE AFFECTED BY THE PROBLEMS OF PRICE COMPETITION. INSUFFICIENT BUSINESS AND HIGH STAFF COSTS IN THE THIRD QUARTER.

HOWEVER. THE PROBLEM OF INSUFFICIENT BUSINESS IS EXPECTED TO EASE OFF CONSIDERABLY IN THE FOURTH

QUARTER.

/ON THE