XN000022-1992-11-27 — Page 13

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FRIDAY, NOVEMBER 27, 1992

ON INVESTMENT, RETAINED IMPORTS OF CAPITAL GOODS ROSE SUBSTANTIALLY, BY ABOUT 21% IN REAL TERMS IN THE THIRD QUARTER OVER A YEAR EARLIER, HAVING RISEN BY 24% IN THE SECOND QUARTER.

WITHIN THIS CATEGORY, RETAINED IMPORTS OF INDUSTRIAL FOR MANUFACTURING USE CONTINUED TO SHOW A MARKED INCREASE.

MACHINERY

FOLLOWING A TEMPORARY EASING IN THE FIRST HALF OF 1992, THE LABOUR MARKET TIGHTENED UP AGAIN IN THE THIRD QUARTER.

THE

THE SEASONALLY ADJUSTED UNEMPLOYMENT RATE, AT 1.9% IN THIRD QUARTER, WAS 0.4 AND 0.2 OF A PERCENTAGE POINT RESPECTIVELY LOWER THAN IN THE PRECEDING QUARTER AND IN THE SAME QUARTER LAST YEAR.

THE UNDEREMPLOYMENT RATE, AT 1.9% IN THE THIRD QUARTER, WAS 0.3 OF A PERCENTAGE POINT LOWER THAN IN THE PRECEDING QUARTER, THOUGH 0. 4 OF A PERCENTAGE POINT HIGHER THAN IN THE SAME QUARTER LAST YEAR.

IN THE SECOND QUARTER, VACANCIES IN ALL MAJUR SERVICE SECTORS RECORDED INCREASES OF VARIOUS MAGNITUDE OVER A YEAR EARLIER, BUT THOSE IN THE MANUFACTURING SECTOR AND ON BUILDING AND CONSTRUCTION SITES CONTINUED TO DECLINE.

EARNINGS IN THE MANUFACTURING SECTOR AND IN THE SERVICE SECTORS AS A WHOLE WERE HIGHER BOTH IN MONEY TERMS AND IN REAL TERMS.

THE PERFORMANCE

OF THE PROPERTY MARKET VARIED AMONGST SUB- SECTORS IN THE THIRD QUARTER. THE RESIDENTIAL PROPERTY MARKET UNDERWENT SOME CONSOLIDATION.

THE RELATIVELY TIGHT MORTGAGE LENDING POLICY OF THE BANKS CONTINUED TO HAVE A RESTRAINING EFFECT, NOTWITHSTANDING ANOTHER INTEREST RATE CUT BY HALF OF A PERCENTAGE POINT ON JULY 6.

TRANSACTIONS FELL MARKEDLY IN THE THIRD QUARTER.

AS

PRESSURE, LATTER

PRICES SHOWED LITTLE MOVEMENT BUT WERE CLEARLY UNDER INDICATED BY A GENERAL SOFTENING OF ASKING PRICES IN THE PART OF THE QUARTER.

MEANWHILE, RENTALS FOR NEW LETTINGS CONTINUED TO INCREASE.

IN

THE MARKET FOR SHOPPING SPACE, DEMAND WAS MAINTAINED WHILE PRICES AND RENTALS GENERALLY HELD STEADY, WITH SOME INCREASES IN RENTALS FOR SHOPS IN PRIME LOCATIONS.

THE DEMAND FOR OFFICE SPACE CONTINUED TO RISE ALONG WITH A MODERATE INCREASE IN RENTALS IN MANY DISTRICTS, WHILE SUPPLY REMAINED ABUNDANT. THE SALES MARKET FOR OFFICE STRATA WAS ACTIVE AND ATTRACTED MUCH INTEREST.

THE MARKET FOR FACTORY SPACE REMAINED GENERALLY HOWEVER, WELL-LOCATED MODERN INDUSTRIAL BUILDINGS DESIGNED MANUFACTURING AND ANCILLARY OFFICE USES WERE MORE FAVOURED.

SLUGGISH.

BOTH

FOR

/ON INFLATION,