The prosperity index of China’s cotton textile industry came in at 49.6% in August, up 0.8 percentage points from July. In August, the market trading saw seasonal improvement. Combined with fluctuations in raw material prices and business operations, the prosperity index of the cotton textile industry is still below the boom-bust line, but there has been a trend of recovery and improved business confidence for the future market.

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

In August, the raw material purchasing index was 48.5%, unchanged from July; the raw material inventory index was 49.9%, up 0.7 percentage points month-on-month; the production index was 50.3%, up 1.0 from July; the product sales index was 49.8%, increasing 1.1 percentage points from July; the product inventory index was 48.7%, up 0.5 from July; and the business index was 49.1%, unchanged from July.

Figure: Prosperity Index of China Cotton Textile Industry

Source: CHINA TEXTILE LEADER Express