EXTERNAL TRADE: Exports up 6.6%
Merchandise exports recorded a 6.6% year-on-year increase in November, despite the high base of comparison from a year earlier. Exports to the mainland China market, which rose 9.5% in the period, and other emerging Asian markets continued to provide support, partly offsetting the weakness in demand from the U.S. and Japan.
The weakness in the U.S. housing market and the further repercussion of the global credit market concerns remain overhanging issues for the global economic outlook. Nevertheless, favorable factors such as the persistent and strong economies from the Mainland and other emerging markets and a weaker Hong Kong dollar should help Hong Kong’s external sector weather the turbulence.
RETAIL SALES: Double-digit growth
Retail sales volume remained robust in November, rising 15.3% after the 13.1% increase in October. The growth is supported by consumers’ willingness to spend and a 17.6% growth in visitor arrivals in the period. This is the sixth consecutive month retail sales volume posted a double-digit gain. Moving forward, retail sales are expected to continue to hold up well amidst robust consumer confidence and vibrant inbound tourism.
LABOR MARKET: Unemployment down
 |
Note: (*) Figures used are three-month averages |
The seasonally adjusted unemployment rate for September-November fell to 3.6%, the lowest level since February-April 1998. With a very buoyant labor market, total employment grew approximately 13,400 to an all-time high of 3,508,800. The improvement in the labor market was broadly based, with lower-skilled workers also benefiting markedly during the current economic upturn. Vacancies in September 2007 also rose to a post-1997 high. The tightened labor market is likely to exert further upward pressure on wages and salaries.
PROPERTY: Market remained upbeat
The property market continued to be upbeat in November, with the number of sale and purchase agreements in the period rising to 18,105, the highest in more than 10 years. Lower interest rates and improved household financial positions also have resulted in strong demand for residential properties and a broad-based climb in sale prices in November.
The price and rentals of commercial properties continued the uptrend as well in November amid the strong growth in business volume and companies’ expansion plans. The rise in office sale prices was particularly strong.
COMPOSITE CPI: Increased inflation
|
Note: (*) Rates concession during April to September 2007 |
The inflation rate grew slightly to 3.4% in November, with this development fully accounted for in the 2% inflation forecast for 2007. Apart from external pressures from food and energy prices, the weakening of the U.S. dollar and the appreciation of renminbi, the pick-up in private housing rentals lately also deserves attention. The tightened labor market may also generate greater pressure on wage costs. However, the sustained increase in labor productivity should help mitigate these price pressures.
|
