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1. According to the provisional results of a survey released today (December 19) by the Census and Statistics Department, the index of industrial production for the manufacturing sector as a whole decreased by 9.2% in the third quarter of 2003 from a year earlier. This was smaller than the 12.5% decrease in the second quarter of 2003. The corresponding producer price index remained virtually unchanged in the third quarter of 2003 from a year earlier, following 0.9% fall in the second quarter.

2. Indices of industrial production reflect changes in the volume of local manufacturing output after discounting the effect of price changes. The price changes are measured by the producer price indices for manufacturing industries compiled from data on producer prices of industrial goods/services collected from the same survey.

3. Comparing the third quarter of 2003 with a year earlier, the electrical and electronic products, machinery, professional equipment and optical goods industry had the largest fall in output (-21.1%), followed by the food, beverages and tobacco industry (-12.8%), the textiles (including knitting) industry (-12.5%), the paper products and printing industry (-9.3%), and the basic metals and fabricated metal products industry (-5.9%).

4. On the other hand, output of the wearing apparel (except footwear) industry, and the chemical, rubber, plastic and non-metallic mineral products industry increased by 17.8% and 4.9% respectively in the third quarter of 2003 over a year earlier.

5. On a seasonally adjusted basis, the index of industrial production for the manufacturing sector as a whole increased by 2.6% in the third quarter of 2003 over the second quarter of 2003.

6. Producer price indices reflect the prices of local manufacturing output. They measure the actual prices (net of any discounts or rebates allowed to buyers, plus any surcharges) received by manufacturers. Transportation and other incidental charges are not included.

7. Comparing the third quarter of 2003 with a year earlier, the fabricated metal products (except machinery and equipment) industry had the largest decline in producer prices (-3.5%), followed by the consumer electrical and electronic products industry (-2.3%), the paper products and printing industry (-1.7%), and the textiles (including knitting) industry (-0.2%).

8. On the other hand, increases in producer prices were recorded for the plastic products industry (+2.8%), the machinery, equipment, apparatus, parts and components industry (+0.6%) and the wearing apparel (except footwear) industry (+0.2%) in the third quarter of 2003 over a year earlier.

9. Comparing the third quarter of 2003 with second quarter of 2003, the producer price index for the manufacturing sector as a whole increased by 0.6%.

10. Table 1 (text version of table 1) shows the year-on-year percentage changes in the indices of industrial production by industry group and selected component industry. Table 2 (text version of table 2) shows the year-on-year percentage changes in the producer price indices by industry group.

11. More detailed statistics are given in the "Quarterly Index of Industrial Production, 3rd Quarter 2003" report and the "Quarterly Producer Price Indices for Manufacturing Industries, 3rd Quarter 2003" report. These publications are now available, in both hardcopy and softcopy (in PDF format), for sale at HK$11 and HK$10 respectively. They can be purchased online at the "Statistical Bookstore, Hong Kong" (http://www.statisticalbookstore.gov.hk). If the softcopy version is intended, please note that there is currently a special promotion under which the softcopy can be downloaded free of charge subject to some minor conditions. For details, visit the Statistical Bookstore. Otherwise, purchase through mail order can be made by returning a completed order form which can be downloaded from the C&SD's website (http://www.info.gov.hk/censtatd/eng/prod_serv/forms_index.html). Purchase in person can be made at the Publications Unit of the C&SD (Address: 19/F, Wanchai Tower, 12 Harbour Road, Wan Chai; Tel.: 2582 3025).

12. For enquiries about the survey results, please contact the Industrial Production Statistics Section of the Census and Statistics Department at telephone 2805 6643 or email ind-production@censtatd.gov.hk.

Ends/Friday, December 19, 2003

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