2009 is unquestionably a rather difficult year for all sectors of China textile industry. Although global market demand still remains weakened and withered, textile industry is beginning to show signals of rebounding thanks to the enlarging domestic demand as well as the positive effect of macroeconomic stimulating policies of the government. As concluded from all the data unveiled by relative authoritative agencies, domestic textile industry is probably genuinely walking out of shadow since March this year although things still needed to be cautious.

Overall industrial output value of the 52, 000 over-scale textile industry totaled 1,715 billion RMB, increasing by 6.44% year-on-year, which is also the fourth consecutive increasing since March. Although the increasing rate is 10.75% lower in comparison with that of 2008, total output and market demand can almost strike a balance.

Fixed asset investment more cautious

Fixed asset investment of over five million RMB reached 135 billion RMB in the first half year which is a 6.35% year-on-year increase. Although the increasing rate is down by 7.89% when annually compared, it is also the fourth consecutive increasing since March this year.

On-going new investing programs launching

New investing programs could to a certain extent represent or indicate the market demand orientation, 3,930 new programs were launched from January to June, increasing by 22.05%, which in another way indicated the confidence that the industry holds to a promising market recovery.

Domestic demand keeps enlarging

Overall domestic sales value for over-scale textile markets reached up to 1,338 billion dollars, increasing by 10.72% year-on-year. Although the increasing rate has descended by 9.68% in contrast with last year, a 1.3% increase can`t be neglected when comparing with the first five months which indicated that domestic demand beginning to show its impact.

Profit descending magnitude narrowing down

Profit margin of textile industry remains negative growth ever since 2009. Nonetheless, the descending magnitude is obviously narrowing down since January. Profit fit margin of over-scale enterprises reached up to 43.2 billion RMB, down by 0.14% annually.

Almost all countries around the globe face a downturn exportation, China textile industry maintains and reinforces a certain share. According to the statistics unveiled by American Commercial Department, overall import of America apparel from around the world has down by 14.12%, import from China decreased 3.72% but taking up 34.74% of its overall import and that is a 3.75% increase year-on-year.

To summarize all the indexes and statistics including manufacturing, investment, domestic sale, export, profit and etc, it still remains a pivotal stage for all the inland textile sectors. Although statistics and indexes can tell, nobody can guarantee anything under this circumstance. Future risks still lurk and much has to be handled.

Source: China Textile Leader