In the first quarter of this year, the main operating indicators of China’s knitting industry have shown steady growth. There has been a significant year-on-year improvement in revenue. The output of knitted garments enterprises above designated size increased significantly. And the overall operation of the industry is stable, showing a positive recovery and development trend.

A. Production Revenue

According to the National Bureau of Statistics, the main business income of enterprises above designated size in the knitting industry rose 2.73% year-on-year in the first quarter of this year, 6.9 percentage points higher than the performance of 2023. Changes in operating costs of enterprises above designated size in the knitting industry were basically the same as operating revenues, up 2.51% over the same period in 2023. From January to March, the enterprise saw a 3.97% year-on-year increase in operating income from knitted fabrics. In the first quarter of this year, the growth rate of apparel production in China turned positive, increasing by 1.89% year-on-year. The output of knitted garments increased by 8.47% year-on-year, which is 13.55 percentage points higher than the total for 2023, indicating a positive development trend.

B. Profitability

In the first quarter of 2024, the total profits of knitting enterprises above designated size soared by 30.94% year-on-year. The total losses of loss-making enterprises saw a year-on-year decline of 21.8%, 0.78 percentage points narrower than the same period of last year. Other main economic indicators are as follows.

Table 1: The Main Economic Indicators of Knitted Enterprises Above Designated Size, in Q1, 2024

Source: China Customs

C. Foreign Trade

The General Administration of Customs Express reports that China’s textile and garment exports totaled US$ 89.84 billion from January to April 2024, showing a 0.6% increase compared to the previous year. Among them, textile exports were US$ 44.28 billion, showing a 1.2% increase year-on-year; apparel exports amounted to US$ 45.56 billion, remaining the same as the previous year’s performance. From the perspective of the primary export destinations, China’s exports of knitted products to the United States, ASEAN, and the European Union showed an increasing trend in the first quarter. In addition to the five countries of Central Asia, Bangladesh, Russia, and other countries and regions along the Belt and Road Initiative, there was also a noticeable increase in the growth rate of exports.

Table 2: Exports of Knitted Products by Destinations in Q1, 2024

Source: China Customs

From the perspective of subcategories, the exports of most knitted products have shown positive growth in the first quarter. Among them, the export growth of T-shirts, and underwear & loungewear (excl. bra) is significant, with growth rates of 28.12% and 11.25%, respectively.

Table 3: Exports of Knitted Products by Category in Q1, 2024

Source: China Customs

Based on the data released by China Customs, most regions in China have experienced year-on-year growth, especially in Jiangsu, Zhejiang, and other key areas along the eastern seaboard that have returned to the growth zone. In recent years, the policy concerning the textile and clothing industry in central and western China has consistently made efforts, leading to significant achievements.

Table 4: Knitted Products Exports of China’s Major Exporters in 2024

Source: China Customs

D. Domestic sales

In the first quarter, domestic sales in the textile industry maintained the recovery growth. The retail sales of clothing, foot & head wear and knitted goods totaled 369.4 billion yuan, seeing a year-on-year increase of 2.5%. Since the beginning of 2024, new forms of e-commerce, like live streaming and instant retailing, have greatly contributed to the growth of online shopping. The total online sales of wearable items increased by 12.1% year-on-year in the January-March period, marking a rise of 1.3 percentage points compared to 2023.

While the global economic recovery this year still faces greater uncertainty, the current export market shows some signs of improvement. However, the improvement in external demand is limited due to the impact of the complex international environment, which is exerting pressure on the industry’s foreign trade. Domestic sales are expected to keep growing, supported by the implementation of different consumer policies and measures designed to enhance consumer demand. This is expected to boost economic activity. With China focusing on improving new quality productive forces and quality to gain a competitive edge in the industrial sector, China’s knitting industry is projected to experience new growth by 2024.

Source: CHINA TEXTILE LEADER Express