XN000022-1992-08-13 — Page 8

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THURSDAY, AUGUST 13, 1992

1992,

REGARDING THE BUSINESS OUTLOOK FOR THE THIRD QUARTER OF RESTAURANTS AND FIRMS IN THE WHOLESALE, RETAIL AND IMPORT/EXPORT TRADES ANTICIPATE AN IMPROVEMENT.

FOR HOTELS, THE BUSINESS SITUATION IS EXPECTED TO DETERIORATE IN THE THIRD QUARTER OF 1992. IN PARTICULAR, THE PROBLEM OF INSUFFICIENT BUSINESS IS EXPECTED TO BECOME MORE SERIOUS IN THE THIRD QUARTER OF 1992.

IN THE OTHER SERVICES SECTOR, THE FIRMS GENERALLY EXPERIENCED A MILD IMPROVEMENT IN THE GENERAL BUSINESS SITUATION IN THE SRCOND QUARTER OF 1992 COMPARED WITH THE PRECEDING QUARTER.

AMONG THEM, BANKS AND FIRMS ENGAGED IN REAL ESTATE DEVELOPMENT AND RELATED SERVICES EXPERIENCED CONTINUED IMPROVEMENT IN THE GENERAL BUSINESS SITUATION THOUGH BANKS HAD EXPECTED ONLY A STABLE BUSINESS SITUATION IN THE SECOND QUARTER OF 1992 COMPARED WITH THE PRECEDING QUARTER.

FOR BANKS, THERE WAS IMPROVEMENT IN THE PROBLEMS OF PRICE COMPETITION AND SHORTAGE OF EXPERIENCED STAFF IN THE SECOND QUARTER.

AGAINST THIS OVERALL FAVOURABLE TREND FOR THE SECTOR, FIRMS IN THE TRANSPORT, STORAGE AND COMMUNICATION SERVICES EXPERIENCED AN UNEXPECTED MILD DETERIORATION IN THE GENERAL BUSINESS SITUATION IN THE SECOND QUARTER OF 1992.

THEY REPORTED INCREASED CONCERN OVER THE PROBLEMS OF HIGH STAFF COSTS AND PRICE COMPETITION.

REGARDING THE PROSPECTS FOR THE THIRD QUARTER OF 1992, BANKS AND FIRMS ENGAGED IN REAL ESTATE DEVELOPMENT AND RELATED SERVICES ANTICIPATE A CONTINUED IMPROVEMENT IN THE GENERAL BUSINESS SITUATION.

FOR THE TRANSPORT, STORAGE AND COMMUNICATION SERVICES, THE GENERAL BUSINESS SITUATION IS EXPECTED TO IMPROVE FROM THE LESS FAVOURABLE SITUATION IN THE SECOND QUARTER OF 1992.

IN THE SECOND QUARTER OF 1992, FIRMS IN THE MANUFACTURING SECTOR GENERALLY ENCOUNTERED THE COMMON PROBLEMS OF HIGH WAGE RATES AND PRICE COMPETITION. THESE PROBLEMS ARE EXPECTED TO CONTINUE THE THIRD QUARTER.

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DURING THE PAST FEW QUARTERS, HIGH WAGE RATES EMERGED MOST WIDELY REPORTED PROBLEM IN THE SECTOR. THE PROBLEM PARTICULARLY PREVALENT IN THE PRINTING, THE ELECTRICAL MACHINERY APPLIANCES, AND THE WATCHES AND CLOCKS INDUSTRIES.

IN THE CONSTRUCTION SECTOR, PRICE COMPETITION, SHORTAGE OF SKILLED LABOUR, INSUFFICIENT BUSINESS/CONTRACTS AND HIGH WAGE RATES CONTINUED TO BE THE MAIN PROBLEMS TO THE FIRMS IN THE SECOND QUARTER OF 1992.

IN PARTICULAR, THE PROBLEM OF PRICE COMPETITION WAS MORE WIDELY REPORTED IN THE SECTOR. THESE PROBLEMS ARE EXPECTED TO REMAIN IN THE THIRD QUARTER.

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