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Canton Fair witnesses sharp fall in textile orders
Oct '11
The 110th Canton Fair witnessed a sharp decline in European and American customers. Due to this, textile and clothing exhibitors saw their orders sharply reduced.

Data released from China General Administration of Customs showed that China's textile and apparel exports reached US $22.981 billion in September, down 9.7 percent from the previous month.

Of which, textile exports registered US $ 7.948 billion, down 5 percent from the previous month, exports of clothing and accessories fetched US $15.033 billion, a decline of 12 percent from the previous month.

United States, Japan and the EU are China's major importers of textiles and clothing.
According to national consumer confidence index from these countries, Japan's spending power has been gradually recovering from the earthquake disaster.

While demand from the United States and the EU are declining due to European debt crisis and the not so optimistic economic situation. Their consumer confidence index continues to decline.

Meanwhile, Chinese domestic consumption seems to be less than expected, overall demand shows slowdown. In September, clothing retail sales of 100 large key retailers in the country fell 1.98 percent year on year; it was the first decline in several months.

RMB appreciation will increase export costs, thereby reducing China's competitive advantage in international market, resulting in declined export profits of export companies.

Fibre2fashion News Desk - China

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