The sentiment index for textile professional markets showed a nuanced divergence in June 2026: the management-side index accelerated its recovery, while merchant-side profitability and pricing indicators remained below the boom-bust line. Data from the China National Textile and Apparel Council's Circulation Branch shows the manager sentiment index rose 0.43 percentage points month-on-month to 49.78, while the merchant sentiment index rose 0.34 points to 50.07. Although the overall index remains below the 50-point boom-bust line, the upward trend is clear, with the merchant index returning to expansion territory for the first time in months.
Management Recovery: Improved Footfall and Logistics
Among the manager sentiment sub-indices, logistics dispatch volume, footfall, and store opening rate all improved month-on-month, rising by 0.64, 0.64, and 0.32 percentage points respectively. This indicates a gradual recovery in offline operations for professional markets. According to the survey sample, 93.55% of professional markets kept rents unchanged, suggesting stable operating costs without major fluctuations. The e-commerce sales index also rose 0.64 points to 51.61, reflecting increased attention from market managers to online channels.
The business environment index fell from 53.55 to 51.94, still high but down 1.61 points month-on-month. This may reflect managers' adjusted expectations for the macro consumption environment or competitive landscape. Overall, the management-side indicators showed little divergence, with the total business volume index flat, indicating no significant expansion in overall transaction volumes—the recovery was more evident in the activity of people and goods flows.
Merchant Pressure: Sales Rebound Masks Profitability Woes
Although the merchant sentiment index crossed 50, its internal structure was uneven. The sales volume index rose 1.03 points month-on-month to 50.14, the main driver of the overall index. However, the average selling price index fell 0.22 points to 49.30, and the profitability index, despite rising 0.89 points, remained below 50 at 49.86. This set of data reveals a classic dilemma: merchants are boosting sales by cutting prices, but profit margins are further squeezed.
Cost pressures are also mounting. The comprehensive cost index fell 0.19 points to 50.63, still above 50 but marginal decline means costs are beginning to tighten. The inventory index rose 0.21 points to 50.00, exactly at the threshold, indicating some relief in inventory pressure. In the survey, 18.18% of merchants reported declining sales, 19.58% reported declining profits, and 18.88% reported falling selling prices—all proportions increased from the previous month.
E-commerce as a Stabilizer
Against the backdrop of traditional channel pressure, e-commerce sales have become a stabilizer for professional market merchants. Both the manager e-commerce sales index and the merchant e-commerce sales index rebounded above the boom-bust line. 22.58% of professional markets reported increased e-commerce sales, up 6.45 percentage points from the previous month; 9.79% of merchants reported increased e-commerce sales, up 8.42 points. The online penetration rate in textile professional markets is accelerating, and e-commerce channels are hedging downside risks for overall sales.
Forward-looking Indicators Show Confidence Recovery
Despite the mixed current operating data, forward-looking indicators send positive signals. The manager's next-period sentiment index is 50.32, and the merchant's next-period sentiment index is 50.84, both above 50. The merchant's expectation for the next-period business environment also rose 0.77 points to 50.84. This suggests that practitioners generally expect further improvement in July.