The prosperity index of China’s cotton textile industry was 50% in February, up 2.9 percentage points from January this year. In February, after the Spring Festival, textile mills resumed production smoothly. Production and sales gradually returned to normal, and the overall business situation improved. The prosperity index recovered to the boom-bust line.

In February, the raw material purchasing index was 49.4%, 1.7 percentage points higher than that of January; the raw material inventory index was 48.7%, declining by 3.9 percentage points month-on-month; the production index was 49.2%, up 3.3 percentage points from January; the product sales index was 51.7%, increasing 5.3 percentage points month-on-month; the product inventory index was 50.4%, growing by 4.2 percentage points from the previous month, and the business index was 50.7%, up by 5.2 percentage points from January.

The prosperity index of China’s cotton textile industry is based on the weighed calculation of numerous main indicators of about 500 backbone cotton textile enterprises. A reading above 50% indicates expansion, while a reading below reflects contraction.

Figure: Prosperity Index of China Cotton Textile Industry

Source: CHINA TEXTILE LEADER Express