China's textile and garment export output stood at 13.95 billion USD in June, up 13.3 percent over the previous month and down 10.1 percent year-on-year. The cumulative export output between January and June amounted to 72.79 billion USD, down about 11 percent year-on-year, according to statistics about the value of China's key export commodities issued by the General Administration of Customs.
China's textile industry still heavily depends on exports, while the export market relies largely on global economic recovery. In March this year, China's textile and garment exports increased 2.59 percent, thanks to overseas markets expanding their imports because of low inventories. This was the first increase for the past few months and the entire industry was encouraged. However, exports slumped again in April and the growth rate decreased 13.07 percent. A review of the first half of 2009 reveals a drop in China's total textile export output. Although the decline narrowed in June, prospects are still not optimistic.
It is notable that the third quarter is a typically slack season for textile and garment exports. At this year's spring session of the China Import and Export Fair, also known as the Canton fair, contracts for garments and accessories worth 1.62 billion USD and textile products worth 1.61 billion USD were concluded, down 15.2 and 7.9 percent respectively year-on-year. Moreover, overseas purchase orders made last year have already been delivered. Therefore, the third quarter will be the roughest time for textile export enterprises.
The textile industry has shown a number of positive signs, despite a continuous decline in exports. According to statistics, the domestic sales volume of the textile industry has continued to increase, up 9.42 percent in the first five months. The growing effect of surging domestic sales on the entire textile and garment industry continues to show. The proportion of domestic sales increased from 77.07 percent in 2008 to 80.03 percent in 2009 over the same period. The growth rate of domestic clothing consumption increased from 15.6 percent in the first quarter to 22.1 percent in May, exceeding the 21.6 percent growth rate for China's retail sales and representing a positive trend.
In addition, statistics from the China Textile Industry Association showed that in the first five months of this year, China's textile enterprises above a certain scale achieved profits of 43.25 billion yuan, down 0.14 percent year-on-year. But the decline rate has narrowed by 10.87 percent over January and February this year. The total profits made between March and May increased by 5.06 percent year-on-year. Of the 50,000 enterprises above certain scale, 32 percent increased their total sales by 11.28 percent, 9.85 percentage points higher than the average growth for the entire industry, and their total profits increased by 34.23 percent, again proving the significant role of science and technology and branding in market competition.
China's textile industry still heavily depends on exports, while the export market relies largely on global economic recovery. In March this year, China's textile and garment exports increased 2.59 percent, thanks to overseas markets expanding their imports because of low inventories. This was the first increase for the past few months and the entire industry was encouraged. However, exports slumped again in April and the growth rate decreased 13.07 percent. A review of the first half of 2009 reveals a drop in China's total textile export output. Although the decline narrowed in June, prospects are still not optimistic.
It is notable that the third quarter is a typically slack season for textile and garment exports. At this year's spring session of the China Import and Export Fair, also known as the Canton fair, contracts for garments and accessories worth 1.62 billion USD and textile products worth 1.61 billion USD were concluded, down 15.2 and 7.9 percent respectively year-on-year. Moreover, overseas purchase orders made last year have already been delivered. Therefore, the third quarter will be the roughest time for textile export enterprises.
The textile industry has shown a number of positive signs, despite a continuous decline in exports. According to statistics, the domestic sales volume of the textile industry has continued to increase, up 9.42 percent in the first five months. The growing effect of surging domestic sales on the entire textile and garment industry continues to show. The proportion of domestic sales increased from 77.07 percent in 2008 to 80.03 percent in 2009 over the same period. The growth rate of domestic clothing consumption increased from 15.6 percent in the first quarter to 22.1 percent in May, exceeding the 21.6 percent growth rate for China's retail sales and representing a positive trend.
In addition, statistics from the China Textile Industry Association showed that in the first five months of this year, China's textile enterprises above a certain scale achieved profits of 43.25 billion yuan, down 0.14 percent year-on-year. But the decline rate has narrowed by 10.87 percent over January and February this year. The total profits made between March and May increased by 5.06 percent year-on-year. Of the 50,000 enterprises above certain scale, 32 percent increased their total sales by 11.28 percent, 9.85 percentage points higher than the average growth for the entire industry, and their total profits increased by 34.23 percent, again proving the significant role of science and technology and branding in market competition.
