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After months of rebound, exports fall back in August
Sep '09
Chinese textile and garment exports registered US $15.66 billion in August, down 16.2 percent compared with same period last year, the contraction rate expanding by 4 percent, when compared with July, ending the rebound of several consecutive months.

Industry experts say the increase in negative growth rates in exports from the textiles and clothing sector for two consecutive months in July and August indicates there has been no substantial recovery in overseas markets and revival is yet to come.

From January to August this year, China's exports of textile and apparel reached US $104.86 billion, down 12.1 percent year on year, larger than the decline of 11.3 percent in January to July.

In August alone, exports of apparel and clothing accessories dropped 17 percent year on year, larger than the decline rates of 12.3 percent in July and 8.5 percent in June.

In fact, it can be found from observation of textile and garment export data of the last year that July, August and September were peak periods of textile and apparel exports, and they began to fall substantially from the fourth quarter of last year.

Textile and clothing exports rebounded April onwards, and it may have come from the needs of foreign buyers who may be making up their inventories and this gap may have occurred, before the peak dispatches happen in time for Christmas in September and October.

This may be the real reason for increase in contraction rates in textile and clothing exports in July and August.

Fibre2fashion News Desk - India

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