Textile Industry Maintains Steady Growth in Jan. – Aug.
In January-August of this year, textile industrial enterprises above designated size (with annual turnover more than CNY 200 million) earned prime operating revenue of near CNY 252.56 billion, up 5.9% year-on-year.
The total profits saw 7.5-percent growth year-on-year in this August, despite the further decline of national figure, which fell 1.9% year-on-year, expanding 0.9 percentage points compared to January-July period.
In the same period, the prime operating revenue of the textile garment and accessories sector rose 6% year-on-year to more than CNY 1.36 trillion, with the total profits increasing 6.3% to CNY 73.25 billion.
The prime operating revenue of the leather, fur, down and their products and shoe-making sector totaled CNY 919.97 billion, up 6.7% year-on-year and their total profits amounted to CNY 55.27 billion, up 6%.
Although facing many challenges and difficulties such as cotton price gap between at home and abroad, the impact of imported cotton yarn, the ups and downs of cotton price, increasing labor and power costs, China's textile industry maintained steady growth. The economic figures show that the industry has shifted from high-speed growth to medium-speed growth and entered into a new phase of deepening restructuring and accelerating transformation and upgrading.
The prime operating revenue of major textile enterprises is expected to top CNY 7 trillion in 2015 and that of the whole industry to surpass CNY 10 trillion, according to Gao Yong, vice president of China National Textile and Apparel Council.
Gao Yong thinks the current growth is normal and in accordance with the operation of the national economy and the practical situation of the industry's transformation and upgrading campaign.
Influenced by the 6.34-percent decline of garment export in the past eight months, the export of textiles has presented negative growth for three straight months, and this is for the first time such continuous decline happens since 2009.
Gao Yong points out that the main reason causing the decline of garment export is the negative growth on EU, Japanese and other markets. This is a result of not only the slow recovery of economy, but also the devaluation of euro and Japanese yen against dollar and yuan.
However, benefiting from the sharp price drop of bulk commodities, especially crude oil price in the international market, for the chemical fiber sector, the cost of raw materials declined faster than the prices of chemical fibers. In the past eight months, the output of chemical fibers increased 10.24% year-on-year with the output value rising 11.4%.
"In January-August of this year, the textile industry's fixed-asset investment grew 15.7% year-on-year, though it is a low point in recent years, the investment presents rational growth," said Gao Yong, "if the investment maintains such growing pace in the next five years, the entire industry is expected to keep steady development."
