The growth rate of the textile industry in the second half of the year is expected to decline from the first half of the year

The Ministry of Industry and Information Technology of China stated that at present, the Chinese textile industry is still facing problems such as cotton price fluctuations, increasing production cost pressures, difficulties for the financing of textile companies, and increased financing costs. It is expected that the growth rate of the industry will decline in the second half of the year compared with the first half.

According to a press release published on the website of the Ministry of Industry and Information Technology, in the first half of the year, the industrial output value of enterprises above the designated size of the textile industry in China was 2.389 trillion yuan, a year-on-year increase of 30%, and the growth rate showed a slowing trend.

"As the people's income increases and the urbanization process accelerates, the domestic demand market will continue to maintain rapid growth, but affected by inflation and other factors, residents' spending power on textiles and clothing will be affected," the press release said.

The press release stated that there are more factors constraining the steady growth of the textile industry in the second half of this year. Including cotton and other textile raw materials prices significantly reduced the space for corporate profits to reduce, last year's high base makes it difficult to maintain a high growth rate this year.

In addition, the current cost of textiles is under pressure, cotton and other textile raw materials oscillate at a high level, labor, energy and other prices continue to climb, credit policies are gradually tightening, and product terminal price transmission is lagging behind.

In the first half of this year, the investment and export of China's textile industry have maintained a steady growth, of which the total investment of the textile enterprises with a total value over 5 million yuan has increased by 37.6% year-on-year, and the export volume has increased by 28.8% year-on-year. However, the export growth rate decreased by 3.5 percentage points from the same period of last year.