*****************************************************

In July 1998, the volume of Hong Kong's re-exports decreased by 11% over the same month last year, while that of domestic exports decreased by 8.0%. Taken together, the volume of total exports decreased by 10%. Concurrently, the volume of imports decreased by 14%.

The Census and Statistics Department today (Thursday) released volume and price statistics of external trade for July 1998.

Comparing the first seven months of 1998 with the same period last year, the volume of Hong Kong's re-exports decreased by 1.0%, while the volume of domestic exports decreased by 3.6%. Taken together, the volume of total exports decreased by 1.4%. Meanwhile, imports decreased by 3.6% in volume.

The growth in volume of trade is derived from the growth in trade value with the effect of price changes discounted.

Comparing July 1998 with July 1997, the prices of re-exports and domestic exports decreased by 4.6% and 2.8% respectively. Import prices also decreased, by 5.8%.

As regards price changes in the first seven months of 1998 over the same period last year, the prices of re-exports and domestic exports decreased by 3.1% and 2.8% respectively, while import prices decreased by 4.6%.

Price changes are reflected by changes in unit value indices which are compiled based on average unit values or, for certain commodities, specific price data.

The terms of trade index is defined as the ratio of total export price index to import price index. Compared with the same period last year, the index for July 1998 and that for the first seven months of 1998 both increased by 1.5%.

The changes in the value, unit value and volume of re-exports by end-use category are shown in Table 1.

Analysed by end-use category, a year-on-year increase in re-export volume in July 1998 was recorded for foodstuffs (+20%). On the other hand, decreases in re-export volume were recorded for fuels (-37%); raw materials and semi-manufactures (-15%); consumer goods (-11%) and capital goods (-3.4%).

Over the same period of comparison, the prices of re-exports for various end-use categories all went down. While prices of fuels declined significantly (-70%), those of other end-use categories registered moderate declines: raw materials and semi-manufactures (-6.5%), capital goods

(-5.2%), foodstuffs (-4.2%) and consumer goods (-1.8%).

The changes in the value, unit value and volume of domestic exports by principal commodity group are shown in Table 2.

Comparing July 1998 with July 1997, the volume of domestic exports of clothing recorded an increase of 6.6%. On the other hand, the volume of domestic exports of footwear; and metal ores and scrap decreased significantly, by 44% and 40% respectively.

Over the same period of comparison, domestic export prices of metal ores and scrap showed an increase of 9.0%. On the other hand, domestic export prices of electronic components decreased by 9.4%.

The changes in the value, unit value and volume of imports by end-use category are shown in Table 3.

The import volume of foodstuffs decreased significantly by 15% in July 1998 compared with July 1997.

Notable decreases in import volume were recorded for fish and fish preparations; and rice. However, significant increases in import volume were noted of soya bean oil, peanut oil, vegetable oil and lard; and animals of the bovine species, live.

Over the same period of comparison, the import volume of consumer goods decreased significantly by 14%.

Notable decreases in import volume were recorded for passenger motor cars and alcoholic beverages.

The import volume of raw materials and semi-manufactures decreased significantly by 20% in July 1998 compared with July 1997.

Notable decreases in import volume were recorded for woven fabrics of wool and mixtures; and wool and other animal hair. However, a significant increase in import volume was noted of raw cotton.

Imports of fuels increased by 25% in volume in July 1998 compared with July 1997.

As regards capital goods, the volume of imports decreased by 3.5% in July 1998 over July 1997.

Notable decreases were recorded in the import volume of industrial machinery other than textile machinery and electrical machinery; and textile machinery. The import volume of transport equipment and office machinery however increased.

Comparing July 1998 with July 1997, import prices of fuels declined substantially by 42%. Other end-use categories recording some declines in import prices were capital goods (-7.2%), raw materials and semi-manufactures (-6.5%) and consumer goods (-3.3%). On the other hand, import price of foodstuffs increased marginally by 0.1%.

Details of the above statistics are published in the July 1998 issue of the "Hong Kong Trade Index Numbers".

The report will be available for sale around October 12, 1998 at HK$14 per copy at either (i) the Government Publications Centre on the ground floor, Low Block, Queensway Government Offices, 66 Queensway; or (ii) the Publications Unit of the Census and Statistics Department on the 19th floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong.

Enquiries regarding regular subscription to this series of report may be directed to the Publications (Sales) Office of the Information Services Department on 28th floor, Siu On Centre, 188 Lockhart Road, Wan Chai, Hong Kong (tel. no.: 2598 8194) and enquiries on trade indices to the Census and Statistics Department (tel. no.: 2582 4918).

End/Thursday, October 8, 1998

NNNN