Clothing Industry Climate Index Down, Profitability Difficult

In the two quarter of 2012, China Economic Commission

The industrial prosperity index was 97.2 points (the growth level of =100 in 2003), down 0.7 points from the previous quarter, and fell for the 3 consecutive quarter.

In the 6 indicators of clothing industry prosperity index (excluding seasonal factors and retaining random factors), the sales revenue, total profit, total amount of tax, number of employees and fixed asset investment growth in garment industry have declined compared with the previous quarter.

After further eliminating the random factors, the prosperity index of clothing industry in the two quarter of 2012 was 95.8 points, 1.4 points lower than the climate index which did not exclude random factors, indicating that the endogenous growth momentum of garment industry has been weakened.

The new round of export tax rebate policy has been put into effect in July 1st, and the effect of the policy will take some time.

Warning index rebounded slightly

In the two quarter, the warning index of the clothing industry in China was 73.3 points, a slight rise of 3.3 points over the previous quarter, and running in the "blue light area" for 2 consecutive quarters.

The year-on-year growth rate has shifted from negative to positive.

After preliminary seasonal adjustment, China's clothing output in the two quarter was 5 billion 220 million, an increase of 21.3% over the same period last year.

The year-on-year recovery in clothing output was due to the low base and the recovery of exports last year.

Overall demand is still weak, and there is no big increase in clothing output in the future.

Sales growth fell year on year

After preliminary seasonal adjustment, the sales revenue of clothing industry in the two quarter was 314 billion 140 million yuan, up 11.1% from the same period last year, up 2.2 percentage points from the previous quarter, and the growth rate was 3.8%.

By calculation, the random factor in this quarter has increased the sales revenue of clothing industry by 16 billion 870 million yuan.

In recent years, clothing prices continue to rise due to the increase of all kinds of comprehensive costs.

According to statistics, in the first half of the year, clothing consumption prices rose by 3.7% over the same period last year, and consumer purchases decreased significantly compared with the same period last year, which largely affected the sales of clothing.

But in the two quarter, after the first quarter of the relatively low sales growth, the major retail enterprises took advantage of the Qingming holiday and the May 1 holiday and the chance of changing garments in April. They increased discount sales efforts, effectively promoted sales growth, and to some extent, made up for some of the consumption which was suppressed by excessive prices.

Stocks remain high.

After preliminary seasonal adjustment, as of the end of the two quarter, the apparel industry accounted for 59 billion 420 million yuan of finished product capital, an increase of 17.3% over the same period last year, up 4.7 percentage points from the previous quarter, down 2 consecutive quarters.

Despite the drop in inventory growth, inventories remain high.

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Export stabilization and recovery

The price of raw materials dropped in the two quarter of 2011, and Europe and the United States

The sustained downturn and the increase in the number of bases in the same period last year showed that the export growth rate of garment industry decreased significantly from September 2011, but the downward trend in the two quarter of 2012 has stabilized.

After preliminary seasonal adjustment, the export volume of clothing in the two quarter of 2012 was 33 billion 280 million US dollars, up 5.7% from the same period last year. The year-on-year growth rate has been negative. The decrease has been narrowed by 1.4%. The decline has narrowed, showing that the export growth rate of the garment industry has been basically stable since the two quarter. However, due to the uncertainties and unstable factors facing the world economic recovery, the overall cost of our clothing elements has increased, the competition in the international market has intensified, and the competitiveness of the garment industry in the neighboring countries has increased.

A small increase in price

In the two quarter, the producer price of clothing industry increased by 2.4% over the same period last year. Although the increase was 0.7 percentage points lower than that of the previous quarter, the price of garment factory remained high.

Many factors such as cotton prices fluctuate greatly, labor force and raw material cost increase together, leading to higher clothing prices, which is not conducive to the increase of clothing consumption.

Profit growth continues to slow down

In recent years, the cost control ability of garment enterprises has been enhanced, and their profitability has been further improved. However, due to the rising cost of all kinds of elements and tight funds, the total profit growth rate continued to decline compared with the previous quarter when the main business revenue growth was slow.

After preliminary seasonal adjustment, the total profit of garment industry in the two quarter was 15 billion 870 million yuan, an increase of 9.2% over the same period last year. The year-on-year growth rate dropped 2.2 percentage points from the previous quarter, with a decrease of 4.8% and a decrease of 4.8%.

According to the calculation, the sales profit margin of the apparel industry in the two quarter was 5.1%, down 0.4 percentage points from the previous quarter, which is lower than the average level of 5.5% of the industry in the current quarter.

According to the preliminary seasonal adjustment, as of the end of the two quarter, the accounts receivable of the garment industry was 88 billion 30 million yuan, up 19.1% from the same period last year, up 3.2 percentage points from the previous quarter.

Accounts receivable turnover days fell from 26.7 days in the previous quarter to 24.8 days, and capital turnover efficiency increased.

Employment downward trend

After preliminary seasonal adjustment, as of the end of the two quarter, the number of practitioners in the apparel industry was 3 million 291 thousand, down 1.5% from the same period last year, representing a negative growth year on year and a downward trend for the 4 consecutive quarter.

The decrease in employment is mainly due to the reduction of orders in some garment enterprises, the poor operating efficiency and the phenomenon of layoffs.

After initial seasonal adjustment, the investment in fixed assets in the two quarter was 73 billion 750 million yuan, up 24.8% from the same period last year, down 3 percentage points from the previous quarter.

Investment in fixed assets has maintained rapid growth this quarter, indicating that garment enterprises' investment confidence has not dropped, and the outlook for production and business prospects is expected to increase, which is conducive to the healthy and sustainable development of the apparel industry in the later stage.