In September, the risk of global stagflation continued to rise, and the challenges hindering the economy from entering a good recovery stage further increased. As the 19 follow-up measures to the policy package for stabilizing the economy played a role, China’s economy recovered steadily. From the perspective of the textile industry, the prices of raw materials are weak. The operation rate of enterprises increased in the traditional textile peak season, which improved market purchases and sales. And the overstock in the previous period has begun to decline. However, faced with a large number of new cottons, insufficient consumption willingness makes enterprises cautious about the future market.

The prosperity index of China’s cotton textile industry came in at 49.72 in September, up 1.1 from August. In September, the raw material purchasing index came in at 49.57, up 2.09 over August; the raw material inventory index came in at 48.83, up 1.23 month-on-month; the production index was 51.67, grew by 2.01 from August; the product sales index came in at 48.47, up by 1.1 from August; the product inventory index was 51.64, down 0.67 from August and the business index came in at 48.72, up 0.62 from the previous month.

The prosperity index of China’s cotton textile industry is based on the weighted calculation of numerous main indicators of about 200 backbone cotton textile enterprises. A reading above 50 indicates expansion, while a reading below reflects contraction.