XN000022-1995-02-16 — Page 12

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Manufacturers in the wearing apparel industry; textiles industry and fabricated metal products industry anticipate volume of orders in the first half of 1995 only to stabilise. However, some improvements in the orders position of these industries are expected in the second half of 1995.

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In general, manufacturers expect capacity utilisation to remain stable in 1995 compared with 1994.

Profit margins, however, are generally anticipated to shrink in 1995 compared with a year ago.

An exception is the electronic and electrical products and electrical machinery industries where the majority of manufacturers expect an increase in the profit margins in 1995.

Exporters expect a moderate increase in both the values of domestic exports and re- exports in 1995 compared with last year.

Bankers are a bit more optimistic as a greater proportion of them look forward to a significant growth in exports in 1995.

Looking ahead, construction firms expect a significant increase in the volume of construction output in 1995 compared with 1994.

The Half-yearly Business Prospects Survey covered about 320 firms from major manufacturing industries, the import/export trades, the banking industry and the construction sector.

It collects views of firms on the short-term prospects of the various major business sectors covered and aims at providing a quick reference, with a minimum time lag, for assessing the short- term future economic performance of Hong Kong.

A spokesman for the department pointed out that in a survey of this nature, the results should be interpreted with caution as it was difficult to establish precisely the extent to which respondents' perception of the future accorded with the underlying trends.