Most sectors are expecting a more unfavourable business situation in the first quarter than in the previous one due to the financial downturn's impact, but are generally less gloomy about the job situation.

The Census & Statistics Department today released its  Quarterly Business Tendency Survey findings. They show  59% of respondents forecast a worse outlook; 6% expected it to improve.

The accommodation and food services sector, mainly the hotels and restaurants industries, has the most unfavourable business outlook, with nearly 80% of respondents expecting business to deteriorate. The construction, and import/export trade and wholesale sectors followed.

The real estate sector is relatively more optimistic about both business expectations and job levels, particularly for respondents engaged in real estate maintenance management services.

However, there are more respondents in the construction, financing and insurance, import/export trade and wholesale, and manufacturing sectors expecting a drop in employment in the first quarter.

Business fall-off expected

In most sectors, significantly more respondents expect their selling prices or service charges to go down with a corresponding fall in their volume of business or output.

The department said business situations across a range of sectors have worsened markedly recently, and the year will be challenging amid a deepening global economic downturn.