The prosperity index of China’s cotton textile industry was 50.0% in November, indicating an increase of 1.1 percentage points from October last year. In November, the cotton textile industry entered its off-season. However, due to the delayed onset of cooler weather this year, the traditional September–October peak season lasted longer than usual. Downstream demand remained firm as buyers continued essential restocking, leading to an unusually active off-season.

In November, the raw material purchasing index was 49.6%, 0.7 percentage points higher than in October; the raw material inventory index was 49.7%, up 0.4 percentage points month-on-month; the production index was 50.9%, up 2.5 percentage points from October; the product sales index was 51.3%, increasing 3.2 percentage points month-on-month; the product inventory index was 50.4%, down 0.1 percentage points from the previous month; and the business index was 50.9%, up 2.0 percentage points from October.

The prosperity index of China’s cotton textile industry is based on a weighted calculation of numerous key indicators from about 500 core cotton textile companies. A reading above 50% indicates expansion, while below 50% reflects contraction.

Figure: Prosperity Index of China Cotton Textile Industry

Source: CHINA TEXTILE LEADER Express