Oct 08, 2023
From the perspective of foreign trade, China's textile and apparel exports saw a year-on-year growth rate of -19% in Jan-Feb, which quickly rebounded to 19% in Mar. The unexpected surge in Mar was mainly due to the short-term factors of pent-up orders caused by the pandemic. However, it declined to 8.8% in Apr and further accelerated to below -10% from May to Jul. Although the export growth rate may narrow in Aug and afterward due to the low base of last year, the actual pressure remains significant. The global manufacturing Purchasing Managers' Index (PMI) has consistently remained below the expansion threshold, indicating a continued downturn in the global economy. The sustained weakness in manufacturing, particularly in Europe and the United States, may pose significant downward pressure on global manufacturing. In the context of inflation, households are reducing their expenditures on optional clothing and home textiles. Since the second half of 2022, imports of textile and apparel from Europe, America, and Japan have noticeably declined, with import volumes maintaining negative growth in 2023.