May Textile Output Growth Hovers at 60% of Industrial Average, Policy Support Still Needed for Recovery

Data released by the National Bureau of Statistics on June 16, 2026, shows that national industrial value-added above designated size grew 4.5% year-on-year in May, with a month-on-month increase of 0.40%. However, the textile sector's performance lagged significantly, posting a year-on-year growth of only 2.6%—less than 60% of the overall industrial growth rate and below the manufacturing average of 4.4%.

Accelerating Divergence: Textiles Left Behind

Among 41 industrial categories, 28 maintained positive growth, but momentum was highly uneven. Equipment manufacturing and high-tech manufacturing led the pack, with the electronic equipment sector surging 17%, becoming the main driver of industrial expansion. In contrast, traditional industries such as textiles, chemicals, and building materials grew at a noticeably slower pace, reflecting the pain of structural transformation.

The 2.6% growth in textiles, though an improvement from earlier periods, remains low. This figure reflects a dual demand weakness: sluggish inventory digestion in overseas markets and slower-than-expected recovery in domestic consumer confidence. Combined with volatile raw material prices for chemicals and cotton, corporate profit margins remain under pressure.

Can Policy and Orders Turn the Tide?

Industry analysts point out that the core challenge for textiles is the coexistence of weak demand and rising costs. However, positive factors are accumulating: consumption stimulus policies, technical transformation programs, and transition finance tools are rolling out, likely to boost end demand and accelerate the elimination of outdated capacity. Meanwhile, the traditional autumn/winter textile order season is beginning, which could provide temporary support through downstream stocking.

For textile enterprises, the key to seizing this window lies in achieving differentiated competition through technological upgrades and product innovation. The path of pure scale expansion is no longer viable; the industry is entering a deep adjustment phase driven by efficiency and quality.

Practical Advice

For Buyers - Monitor raw material price fluctuations and build safety stocks during temporary dips in products like chemical fibers and cotton yarn. - Prioritize suppliers with digital transformation or green certifications to mitigate future environmental and compliance risks.

For Exporters - Focus on high-value-added categories (e.g., functional fabrics, recycled fiber products) for autumn/winter orders to enhance bargaining power. - Include price adjustment clauses in contracts to hedge against exchange rate volatility and shipping cost changes, securing profit margins.