The current economic situation and future trends for the textile industry

Generally speaking, China’s economic operation of textile industry was stable in 2011, and all kinds of indicators were basically normal, but the growth slowed down month by month. According to the date of National Bureau of Statistics, the total value of industrial output achieved 5.47865 trillion Yuan for 36,000 above-scale textile enterprises throughout the country, up 26.8% year-on-year, which the growth dropped 4.8% compared with the end of the first quarter. In addition, the production value of domestic sales realized 4.44417 trillion Yuan, up 29.5% year-on-year, which fell 4.1% compared with the first quarter. Moreover, the output of chemical fiber reached 33.624 million tons for the above-scale textile enterprises in 2011, up 13.9% year-on-year, which fell 4.1% compared with the first quarter, the yarn output reached 28.945 million tons, increased 12.4% year-on-year, fell 0.1%, the fabric output was 6.198 million meters, up 11.6% year-on-year, declined 7.8%, and the garment output came up to 25.42 billion pieces, an increase of 8.1%, which dropped 6.5% compared with the first quarter.

The total amount of fixed assets investment projects more than 5 million Yuan reached 679.91 billion Yuan in the textile industry, up 36.3% year-on-year, which the growth dropped 2.2% compared with the first quarter. Meanwhile, the number of new started projects reached 13,715 units, up 2.3% year-on-year. According to the custom statistics, China’s total exports of textile and apparel reached 254.12 billion dollars in 2011, up 19.9% year-on-year, which the growth fell 7.2% compared with the end of April. Among which the export prices increased 19.3% year-on-year, while the export quantity just improved 0.5% year-on-year.

Although the indicators of textile industry operation were basically normal in 2011, and all kinds of risks increased significantly compared with the previous year. Such as the raw material prices changed radically, financing environment tightened, all kinds of elements and labor costs improved and the growth of foreign demand slumped, which all of those enlarged the operation pressure. Since the second half of last year, the growth of production and marketing, investment and efficiency was slackened month by month. In particular, the downturn of efficiency growth was outstanding, and the operation was faced with greater difficulties in the small-scale enterprises.

The internal and external environment was still very complicated for the China’s textile industry and uncertainty factors were more in 2012. On the one hand, the crisis of the European debt continued to upgrade, the instability and uncertainty of the world economic recovery rose, which would emerge obvious negative influence on consumption, especially as the main consumption of the international market, the economic recovery was sluggish in the United States, Europe and other developed countries and the unemployment was stubbornly high. It was expected the demand growth would still weak in the international market, and the competitive pressure of the export enterprises would become more prominent. On the other hand, it was affected by the monetary policy, led to the international market slowdown and the export pressure enlarged. It was expected that our country’s economic growth would also drop in 2012, and the growth of domestic demand slowed down compared with the previous year. In addition, the raw material price was changeable, labor costs increased, and the financing environment of small and medium-sized enterprises has not been improved, which a series of risk factors still existed. In 2012 China’s production and marketing of textile industry would continue to increase, the main operating indicators of the above-scale enterprises would keep double-digit growth, but the growth was sluggish compared with 2011. Among them, because the space of raising price was limited in the terminal market under the economic downside conditions, and the small and medium-sized enterprises would encounter more difficulties.

Recently, according to the investigation and research, the textile industry was basically stable this year, but the hidden troubles of the textile industry were also obvious. When the growth of cost factors increased rapidly, but there were still many problems, such as financial difficulties and financial expensive etc. Therefore, the Textile Association would also take feasible measures to solve these problems, aimed at creating a good external environment for the transformation and upgrade of the textile industry.

Through the investigation and research, the overall condition was good in the governments at all levels and the enterprise, which they adopted a series of corresponding measures to solve problems, we should keep full of confidence for the future development of the textile industry. See from the development trends, as the necessities of life, the demands of the textile and garment would not be sluggish at home and abroad, especially the fundamentals had no any changeable in our country. The income growth of urban and rural residents was no less than the speed of economic growth, the policy of improving the people’s livelihood and boosting domestic demands would also continue to put into force. Although the competition was more intense in the international market, and there were still relatively obvious international competitive advantage, because our country had the mature and complete industrial system. At the same time, the external environment was nervous, brought a new round of the textile industry reshuffle.