XN000022-1994-02-14 — Page 11

MONDAY, FEBRUARY 14, 1994

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LOOKING AHEAD, FURTHER DETERIORATION IN THE BUSINESS SITUATION IS EXPECTED.

IN THE CONSTRUCTION SECTOR, BOTH THE GENERAL BUSINESS SITUATION AND CAPACITY UTILISATION IMPROVED IN THE FOURTH QUARTER OF 1993. KEEN PRICE COMPETITION FROM LOCAL FIRMS, HIGH WAGE RATES AND SHORTAGE OF SKILLED LABOUR CONTINUED TO BE THE MAJOR BUSINESS PROBLEMS IN THE SECTOR.

LOOKING AHEAD, FURTHER IMPROVEMENT IN THE BUSINESS SITUATION ÍS EXPECTED IN THE FOLLOWING QUARTER.

FOR THE WHOLESALE, RETAIL AND IMPORT/EXPORT TRADES, BOTH THE GENERAL BUSINESS SITUATION AND CAPACITY UTILISATION IMPROVED IN THE FOURTH QUARTER OF 1993. PRICE COMPETITION REMAINED KEEN IN THE QUARTER.

LOOKING AHEAD, FURTHER IMPROVEMENT IN THE BUSINESS SITUATION IS

EXPECTED.

ALTHOUGH BELOW WHAT HAD BEEN EXPECTED PREVIOUSLY, RESTAURANT OPERATORS REPORTED THAT BOTH THE GENERAL BUSINESS SITUATION AND CAPACITY UTILISATION IMPROVED IN THE FOURTH QUARTER OF 1993. KEEN PRICE COMPETITION AND HIGH STAFF COSTS CONTINUED TO BE THE MAJOR BUSINESS PROBLEMS ENCOUNTERED BY THEM.

LOOKING AHEAD,

THE BUSINESS SITUATION IS EXPECTED ΤΟ REMAIN

BROADLY THE SAME.

A LARGE MAJORITY OF THE HOTEL OPERATORS REPORTED THAT BOTH THE GENERAL BUSINESS SITUATION AND CAPACITY UTILISATION IMPROVED IN THE FOURTH QUARTER OF 1993. THE PROBLEMS OF KEEN PRICE COMPETITION, HIGH STAFF COSTS AND SHORTAGE OF STAFF GENERALLY WERE WIDELY REPORTED.

LOOKING AHEAD, SEASONAL DETERIORATION IN THE BUSINESS SITUATION

IS EXPECTED.

FIRMS IN THE TRANSPORT, STORAGE AND COMMUNICATION SERVICES REPORTED BETTER IMPROVEMENT THAN PREVIOUSLY EXPECTED IN THE GENERAL BUSINESS SITUATION AND CAPACITY UTILISATION IN THE FOURTH QUARTER OF 1993.

KEEN PRICE COMPETITION

REMAINED THE

BUSINESS PROBLEM MOST CITED. LOOKING AHEAD, SEASONAL DETERIORATION IN THE BUSINESS SITUATION IS EXPECTED.

ABOUT 500 FIRMS FROM VARIOUS INDUSTRIES AND TRADES, FORMING A CROSS-SECTION OF THE BUSINESS COMMUNITY, PARTICIPATED IN THE SURVEY. THEY WERE ASKED ABOUT THEIR BUSINESS EXPERIENCES AND EXPECTATIONS KELL AS THE BUSINESS PROBLEMS THEY FACED.

AS

A

THE RESULTS OF THE QUARTERLY BUSINESS SURVEY, OBTAINED WITH MINIMUM TIME LAG, ARE INTENDED TO PROVIDE A SOURCE OF REFERENCE FOR MAKING A QUICK ASSESSMENT OF THE CURRENT ECONOMIC SITUATION OF HONG KONG FROM A SHORT-TERM PERSPECTIVE.

/IN THE