Recent Trends In Garment Industry

The industry continued to decline as a whole, and industry growth and profitability continued to decline under the pressure of 1-5 industry profits increased by 8.4% and the external economic slowdown and RMB appreciation accelerated.

In 2008 1-5, the gross income and profit of the textile industry increased by 17.38% and 8.37% respectively, representing an increase of 6.6 and 35.5 points compared with the same period last year; the value of export delivery increased by 293 billion 400 million yuan, up only 8.66% from the same period last year; the financial cost increased by 17 billion 60 million yuan, up 28.4% over the same period last year; the average number of all employed employees increased by 0.69% year-on-year; the loss of the industry was 22.85%, up from the same period last year; in 2008, the gross profit margin of the textile industry in the month of April was significantly lower than that of the same period last year.

The external economy slowed down and exports fell moderately. In 1-6, industry exports increased by 11.1%. The external economic slowdown posed a threat to exports, and exports fell moderately.

In 2008 1-6, textile and apparel exports totaled 81 billion 700 million US dollars, an increase of 11.1% over the same period last year, and the growth rate dropped by 6.1 points compared with the same period last year.

Affected by the relative appreciation of the euro, the export growth rate of Europe accelerated. In 2008 1-6, China's exports to the US, Japan and Europe increased by 10.3%, 7% and 44% respectively. The US economic downturn affected the industry to export to the United States. In 2008, the number of textile and apparel imports from the United States decreased by 4.08% over the same period last year, and the amount fell by 2.84% over the same period last year.

Domestic clothing consumption is still growing rapidly, with an increase of 25.6% in domestic sales in 1-6 months, and the income of residents continues to grow rapidly.

In 2008 1-6, the retail sales of clothing, shoes, hats and needles and textiles increased by an average of 25.6%, which is 4.2 points higher than that of social consumer goods.

Nationwide retail sales data show that retail sales in 2008 increased by 12.55% over the same period last month, while retail sales grew by 20.9% over the same period last year, while volume and price continued to grow steadily and rapidly.

Raw materials and chemical fiber: cotton prices are stable, viscose rebounded slightly, spandex continued downward cotton steady, cotton fell slightly, the difference between inside and outside cotton prices narrowed.

Domestic cotton was slightly stable at the beginning of the year, and the average price of cotton 328 was 13775 yuan / ton in the past 232008 years, compared with the average price in 2007. The average price of cotton increased by 329 yuan / ton over the past 2008-7- years.

The average price of cotton in 2008 was 77.4 cents / pound, up 12.5 cents / pound over the 2007 average price.

In the first 3 weeks of July, the difference between domestic and foreign cotton was -105 yuan / ton (1% customs duty), and the price difference continued to shrink.

In June, domestic viscose prices rebounded, but the increase in supply capacity in the second half of this year will make this weak balance very fragile. The threat of capacity release will cause the spandex to continue to decline in July, and the price of polyester staple fiber will continue to be stable.