Hong Kong's gross domestic product rose 6.8% in real terms in the third quarter over a year earlier, compared with 5.5% growth in the second quarter.

Analysed by constituent sector and on a year-on-year comparison, net output in all service sectors taken together rose 7.8% in real terms, after growth of 7.3% in the second quarter.

After a 14.6% rise in the second quarter, the net output in financing, insurance, real estate and business services grew 11.1% in real terms. The growth impetus came mainly from the continued growth in the financial services, on the back of a significant increase in commission and service income.

Vibrant external trade

Net output in the wholesale, retail and import and export trades, restaurants and hotels rose 10.2% in real terms, faster than the 6.8% increase in the second quarter. The growth was mainly attributable to the continued vibrant external trade and the brisk expansion of offshore trade. Also contributed was the solid growth in local consumer demand.

Net output in transport, storage and communications grew 8.8% in real terms. The improved performance of external trade underpinned the growth in transport and storage services. Net output in communications service also grew further, upon the continued expansion in the traffic volume of international telephone services.

Following a 1.2% rise in the second quarter, the net output in community, social and personal services rose 2.2% in real terms.

Construction lagging

Net output in the local manufacturing sector fell 0.6% in real terms, after a 5.3% rise in the second quarter of 2006.

As to the electricity, gas and water sector, net output recorded a rise of 4.4% in real terms. The growth occurred in both commercial and domestic consumption of electricity.

Net output in the construction sector dropped 6.4% in real terms, following a decrease of 4.1% in the second quarter. The decrease was mainly attributable to the sharp fall in the public sector output.