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US textile & apparel industry reflects weak demand
08 Sep '08
2 min read
United States which stands as the major market for Chinese textile and garment exports, accounting for 15 percent of the country's overall export market, has become gloomy under the expanding impact of sub-prime credit crisis which has brought about a down trend in its economy. As such demand from the region has also reduced considerably.
In the first half of this year, imports of Chinese textile and garments by the US plunged by 2.43 percent and totaled to $13.834 billion. Similarly, even global imports of textile and apparels by the US dipped by 3.29 percent over last year to reach $43.809 billion. These figures only give expression to the fact that US consumer demand has dampened due to sluggish economic growth.
So widespread is the impact of US slowdown that demand for textile and apparel from NAFTA countries has taken a downtrend. Chinese customs statistics revealed that in the first half of this year, textile and apparel exports from China to Canada fetched $1.301 billion, a year on year decline of 28.71 percent while exports to Mexico registered at $223 million, a year on year drop of 61.07 percent.
To make matters worse, a recently conducted survey on the market by the US Federal Reserve Board showed that the sub-prime credit crisis has not yet eased, on the contrary, the situation is likely to deteriorate.
Credit problem shows a trend of developing from the initial outbreak of a subprime crisis to a greater scale of quality loans with higher degree of credibility.
So, it will be a long process for the U.S. market to get out of the weakness and since demand is determined by market forces, unless consumer markets in Europe and US are not optimistic, global economic slowdown will continue, leading to a decline in textile and clothing exports even in the second half.
In the first half of this year, imports of Chinese textile and garments by the US plunged by 2.43 percent and totaled to $13.834 billion. Similarly, even global imports of textile and apparels by the US dipped by 3.29 percent over last year to reach $43.809 billion. These figures only give expression to the fact that US consumer demand has dampened due to sluggish economic growth.
So widespread is the impact of US slowdown that demand for textile and apparel from NAFTA countries has taken a downtrend. Chinese customs statistics revealed that in the first half of this year, textile and apparel exports from China to Canada fetched $1.301 billion, a year on year decline of 28.71 percent while exports to Mexico registered at $223 million, a year on year drop of 61.07 percent.
To make matters worse, a recently conducted survey on the market by the US Federal Reserve Board showed that the sub-prime credit crisis has not yet eased, on the contrary, the situation is likely to deteriorate.
Credit problem shows a trend of developing from the initial outbreak of a subprime crisis to a greater scale of quality loans with higher degree of credibility.
So, it will be a long process for the U.S. market to get out of the weakness and since demand is determined by market forces, unless consumer markets in Europe and US are not optimistic, global economic slowdown will continue, leading to a decline in textile and clothing exports even in the second half.
Fibre2fashion News Desk - China
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