Global economic turmoil hits domestic textile sector

25 Sep '08

1 min read

American market has played an important role in the export earnings of the Chinese textile and garment industry. However, in the first half of this year, the situation has been a little different.

There has been a perceptible decline in growth compared to the six months of the previous year and shows a decline of 2.43 percent in foreign earnings.

The industry insiders are of the opinion that in the second half of 2008, lack of demand from overseas markets may leave the Chinese textile industry in a state of dismay.

According to the available statistics, American unemployment rate in this July has reached 5.7 percent, which is the highest in last 4 years which is a matter of concern as it may put brakes on consumer spending.

Financial experts of the country opine that, the global financial turmoil had begun to hit the markets as well as industries of many countries, including the local textile sector.

In order to get through the difficulty, the domestic textile enterprises have been extremely careful in making new investments. They are trying to reduce labour costs and are putting extra efforts in to developing their domestic market sales.

Fibre2fashion News Desk - China

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