Manufacturers on the whole expect some increases in the volume of orders in 2000 compared with 1999, according to the results of a recent Half-yearly Business Prospects Survey released by the Census and Statistics Department.

Analysed by manufacturing industry, manufacturers in the printing, wearing apparel, as well as electronic and electrical products and electrical machinery industries were generally more upbeat about their business performance in 2000. They generally expect some increases in the volume of orders in 2000 compared with 1999. On the other hand, most manufacturers in the fabricated metal products and textiles industries anticipate little change in the volume of orders.

In general, manufacturers anticipate capacity utilization to remain stable in 2000 compared with 1999. Profit margins are however forecast to be slightly lower in 2000 compared with 1999.

On export performance, exporters generally anticipate little change in the value of domestic exports but some decreases in the value of re-exports in 2000 compared with 1999. Nevertheless, the outlook is expected to improve somewhat in the second half of the year. Meanwhile, bankers are more optimistic about the trade outlook for 2000. They generally expect mild increases in the value of total exports in this year.

As for construction firms, they generally expect some increases in the volume of construction output in 2000 compared with 1999.

The survey is conducted on a half-yearly basis, covering about 300 firms in the 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 cautioned that, in a survey of this nature, the results should be interpreted with care as it is difficult to establish precisely the extent to which respondents' perception of the future accords with the underlying trends.