In May, China's industrial value-added above designated size grew 4.5% year-on-year, with a slight 0.40% month-on-month increase. However, the textile sector only recorded a 2.6% annual growth, lagging behind the overall manufacturing rate of 4.4%. This indicates a slower recovery pace for the textile industry.
Data Reveals Industry Divergence
Data released by the National Bureau of Statistics on June 16 shows that among 41 industrial categories, 28 maintained growth. Electronics manufacturing led with a 17% increase, while high-tech and equipment manufacturing performed strongly. In contrast, traditional light industries like textiles, chemicals, and building materials showed moderate growth. The textile sector's 2.6% rise, though improved from earlier periods, still falls short of the broader industrial recovery.
From January to May, cumulative industrial value-added grew 5.4% nationwide, but the textile sector's cumulative performance was not separately disclosed. The May figures highlight structural pressures: weak domestic and external demand, high raw material costs, and compressed order profit margins.
Key Factors Behind Sector Pressure
The slow recovery in textiles stems from demand-side issues. Overseas markets, affected by inflation and geopolitical tensions, have seen limited order return. Domestically, despite policy stimuli, consumer spending remains cautious. Additionally, volatile prices of chemical fibers and cotton further squeeze profits.
Notably, internal divergence exists. Factories focusing on high-end or functional fabrics maintain higher utilization rates due to technical barriers, while small and medium enterprises relying on traditional bulk orders face more severe challenges.
Policy and Order Support
Industry analysts expect the textile sector to benefit from ongoing policies. Consumption stimulus, industrial upgrades, and transition finance support are being implemented, helping firms upgrade equipment and reduce costs. Meanwhile, the gradual launch of autumn-winter textile orders may release some capacity.
However, recovery strength depends on external conditions. If global trade tensions persist and retail demand does not pick up, the textile industry may remain in a 'weak recovery' phase.