XN000022-1994-11-25 — Page 5

I

3

t

FRIDAY, NOVEMBER 25, 1994

DOMESTIC DEMAND

ΤΟ

MONTHS WAS MORE ON CONSUMER SPENDING, THE GROWTH IN RECENT

THERE WAS A MARKED SLOW- MODERATE THAN IN THE EARLY PART OF THE YEAR. DOWN IN RETAIL SALES, CONCENTRATING MAINLY IN WEAKER SALES OF CONSUMER FOOTWEAR NEVERTHELESS REMAINED DURABLES. SALES OF CLOTHING AND STRONG. IN CONTRAST, RETAINED IMPORTS OF CONSUMER GOODS CONTINUED

TERMS IN THE THIRD SHOW A STRONG INCREASE, BY ABOUT 24% IN REAL

HALF QUARTER OVER A YEAR EARLIER, FOLLOWING AN 11% RISE IN THE FIRST

MANUFACTURING PROCESSES OF THE YEAR. THE PROGRESSIVE RELOCATION OF ACROSS THE BORDER MIGHT HAVE LED TO A DECLINE IN LOCAL PRODUCTION LOCAL USE, WITH THE NEED FOR MORE RETAINED IMPORTS IN ORDER TO MAKE UP

THERE WAS

A PROBABLY MEANWHILE, THERE FOR THE LOCAL SUPPLY SHORTFALL. LARGER BUILD-UP IN STOCKS OF CONSUMER GOODS IN RECENT MONTHS.

THERE

FOR

INVESTMENT IN WAS APPARENTLY A SHARP ACCELERATION SPENDING IN THE THIRD QUARTER. THE GROWTH RATE OF RETAINED IMPORTS OF TERMS IN THE THIRD CAPITAL GOODS PICKED UP TO ABOUT 17% IN REAL

FIRST QUARTER OVER A YEAR EARLIER, FOLLOWING AN INCREASE OF 6% IN THE

MACHINERY AND HALF OF THE YEAR. AMONGST THE VARIOUS TYPES OF

THE EQUIPMENT, RETAINED IMPORTS OF OFFICE EQUIPMENT CONTINUED TO SHOW FASTEST INCREASE IN THE THIRD QUARTER, WHILE THOSE OF CONSTRUCTION RETAINED IMPORTS OF INDUSTRIAL MACHINERY RETURNED TO POSITIVE GROWTH. MACHINERY FOR MANUFACTURING USE HOWEVER REMAINED ON A DOWNTREND. MEANWHILE, EXPENDITURE ON BUILDING AND CONSTRUCTION SHOULD HAVE ALSO REGISTERED STRONG GROWTH IN RECENT MONTHS.

THE LABOUR MARKET

TIGHT.

THERE WAS A THE LABOUR MARKET REMAINED GENERALLY

WHILE A SUSTAINED CONTINUED MARKED INCREASE IN OVERALL EMPLOYMENT.

TO A FURTHER NET INFLOW OF PEOPLE INTO HONG KONG CONTRIBUTED RECENT IN LABOUR FORCE

THE QUARTERS, SIGNIFICANT GROWTH IN THE

2.3% IN THE THIRD UNEMPLOYMENT RATE EDGED UP ONLY SLIGHTLY, TO

FELL RATE

TO 1.1%. A CLOSER QUARTER, AND THE UNDEREMPLOYMENT

THAT

AVERAGE DURATION OF THE THE FALL IN THE UNDEREMPLOYMENT RATE UNEMPLOYMENT HAD NOT LENGTHENED. SIGNIFIED AN EVEN GREATER UTILISATION OF THE EMPLOYED WORKFORCE.

EXAMINATION

OF

THE DATA

CONTINUED.

SHOWED

TO THE

THE BETWEEN

A

THE SHIFT IN EMPLOYMENT FROM THE MANUFACTURING SECTOR SERVICE SECTORS

FULL EMPLOYMENT, AMIDST SUSTAINED LOCAL WORKFORCE GENERALLY ENJOYED CONTINUED RISES IN INCOME. JUNE 1993 AND JUNE 1994, AVERAGE EARNINGS IN THE SERVICE SECTORS AS WHOLE AS WELL AS IN MANUFACTURING REGISTERED FURTHER INCREASES IN REAL INCREASE IN REAL TERMS. CONSTRUCTION WAGE RATES ALSO HAD A SMALL

TERMS.

THE PROPERTY