In May, affected by multiple factors, including slowing global economic growth, the spillover effects of geopolitical conflicts, and rising trade protectionism, China’s apparel export decline widened. Domestic sales maintained relatively rapid growth, driven by the May Day holiday effect, the earlier launch of promotional campaigns for the “618” online shopping festival, and national policies aimed at stabilizing growth and promoting consumption.

Apparel production remained generally stable, while pressure on corporate profitability showed signs of marginal easing. However, investment continued to contract, and the industry remained under pressure. In the face of an increasingly severe and complex external environment, apparel enterprises need to actively address multiple risks and challenges, including intensifying market competition, exchange-rate fluctuations, and rising overall costs. They should continue to deepen transformation and upgrading, accelerate the development of new quality productive forces, and systematically promote the industry’s steady recovery and high-quality development.

01 Production

According to data from the National Bureau of Statistics of China, from January to May 2026, the industrial added value of apparel enterprises above the designated size increased by 2.0% year on year, a 0.5 percentage-point slowdown from the January-April period. Apparel output of enterprises above the designated size increased by 0.24% year on year, a 1.05 percentage-point slowdown from the January-April period.

02 Domestic Sales

According to data from the National Bureau of Statistics of China, from January to May 2026, China’s total retail sales of consumer goods reached 20.6 trillion yuan, representing a year-on-year increase of 1.4%. The growth rate slowed by 0.5 percentage points compared with the January–April period. Of this total, cumulative retail sales of apparel by enterprises above the designated size reached 467.84 billion yuan, up 7.4% year-on-year. The growth rate slowed by 0.9 percentage points compared with the January–April period. In May alone, retail sales of apparel by enterprises above the designated size increased by 4.1% year on year.

According to data from the National Bureau of Statistics of China, online retail sales of physical goods from January to May 2026 reached 5.27 trillion yuan, up 5.0% year-on-year. Online retail sales of apparel increased by 7.2% year-on-year, accelerating by 0.4 percentage points from the January–April period.

03 Exports

According to data from China Customs, from January to May 2026, China’s cumulative exports of apparel and accessories amounted to US$57.24 billion, down 1.6% year on year. The decline widened by 0.7 percentage points compared with the January–April period. In May alone, exports of apparel and accessories amounted to US$13.02 billion, down 4.1% year on year.

According to data from China Customs, China’s apparel exports to the United States totaled US$13.31 billion from January to May 2026, representing a 10.3% year-on-year increase. The growth rate accelerated by 3.4 percentage points compared with the January–April period. Benefiting from an easing of China–US economic and trade relations, China’s apparel exports to the United States reached US$3.23 billion in May, up 22.7% year-on-year.

04 Investment

According to data from the National Bureau of Statistics of China, from January to May 2026, fixed-asset investment in China’s apparel industry declined by 10.3% year on year. The decline widened by 1.0 percentage point compared with the January–April period.

05 Economic Performance

According to data from the National Bureau of Statistics of China, from January to May 2026, China’s apparel industry had 12,545 enterprises above the designated size, defined as enterprises with annual principal business revenue of 20 million yuan or more. These enterprises generated operating revenue of 393.29 billion yuan, down 3.75% year-on-year. The decline widened by 0.33 percentage points compared with the January–April period. Total profits amounted to 10.27 billion yuan, down 11.41% year-on-year. The decline narrowed by 2.13 percentage points compared with the January–April period. The operating profit margin was only 2.61%, which was 0.23 percentage points lower than in the same period of 2025, but 0.06 percentage points higher than in the January–April period.

Source: CHINA TEXTILE LEADER Express