TNAG-1267-FCO40-1616-Economic-situation-in-Hong-Kong-1983 — Page 57

Prices of output

6.5

FC040/1616

The prices of manufacturing output, as indicated

by the unit value index of domestic exports, also rose at

(5) an increasingly rapid rate

While the unit value

index of domestic exports in the third quarter of 1983 was

10% higher than in the same quarter last year, the

year-on-year rate of increase in the second quarter was 6%

and in the first quarter was 4%. The rise in the import prices of raw materials and semi-manufactures, which was at least in part due to the depreciation of the Hong Kong dollar, was a contributory factor. The sharp depreciation

of the Hong Kong dollar, particularly against the US

dollar, during the third quarter also accelerated the

recent rise in the domestic export unit value index because many export orders, even if they are not from the

United States, are denominated in US dollars.

6.6

As regards property prices and rentals, the general impression is that prices and rentals of large

domestic units eased further in the third quarter. But

for domestic units in locations where demand is in better

balance with supply, rentals appeared to show greater

stability (paragraph 5.6).

/ Consumer

(5) The year-on-year rates of increase in the unit value index of

domestic exports (%):

Year-on-year rates of increase

Note : (*)

1982

1983

Q2

2222 223

Q3*

10

8

52

4

6

10

Estimated by using trade indexes available up to August 1983.

44