The prosperity index of China’s cotton textile industry was 50.7% in December of 2024, up 1.2 percentage points from November. In December, textile mills and downstream enterprises stocked up for the coming Spring Festival holiday. Although the overall stock replenishment performed weaker than expected at the end of 2024, the textile mills’ production and sales were still better than that of November last year; the operation has improved, and the prosperity index rose above the boom-bust line.

From the sub-index point of view, the raw material purchasing index and business confidence index were lower than the critical point, while other indexes were higher than the critical point.

In December, the raw material purchasing index was 48.8%, 1.3 percentage points lower than that of November of 2024; the raw material inventory index was 50.3%, declining by 0.2 percentage points month-on-month; the production index was 51.2%, up 0.5 percentage points from November of 2024; the product sales index was 50.1%, increasing 1.5 percentage points from November of 2024; the product inventory index was 53.0%, growing by 3.6 percentage points from the previous month, and the business index was 51.9%, up by 2.2 percentage points from November of 2024.

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.

Figure: Prosperity Index of China Cotton Textile Industry

50%=unchanged from last month

Source: CHINA TEXTILE LEADER Express