WWD.com/business-news/government-trade/apparel-manufacturing-gains-in-third-quarter-6531084/
government-trade
government-trade

Apparel Manufacturing Gains in Third Quarter

Production in developing countries grew 5.7 percent, with China and India registering gains and Brazil and Egypt declines.

GENEVA — Apparel production in developing countries grew 5.7 percent in the third quarter of 2012 compared with the same period last year, with China and India registering gains and Brazil and Egypt declines, a United Nations report said.

This story first appeared in the December 11, 2012 issue of WWD.  Subscribe Today.

Apparel production rose 5.1 percent in China and 5.7 percent in India, but dropped 7.6 percent in Brazil and 11 percent in Egypt, the report said. Industrialized countries also reported declines in apparel output in the third quarter, which included a 7.6 percent fall in Italy and a 3.7 percent drop in the U.S.

“The current slowdown in developing countries has mainly been caused by…the loss of demand from industrialized countries due to prolonged financial instability, especially in Europe, and limited inflow of capital to developing economies has steadily slowed their growth,” said the quarterly report from the Vienna-based U.N. Industrial Development Organization.

Overall, global apparel output grew 2.9 percent in the third quarter, increasing 5.7 percent in developing countries and contracting 4 percent in industrialized nations, according to the report. Compared with the second quarter, apparel output rose 1 percent in India but fell 4.1 percent in China, and also declined in Brazil, Egypt, Italy and the U.S.

Global textile production posted better results, with world output up 5.8 percent in the third quarter. Developing countries managed a 5.9 percent increase, while industrialized nations witnessed a 6.3 percent decrease. Italy experienced a fall of 7.2 percent, while the U.S. bucked the tide and registered a 0.7 percent gain.

The U.N. report said, “As uncertainty over fiscal consolidation continues to loom and business as well as consumer confidence remain low, the growth prospects observed previously in 2012 have lost momentum. The recovery prospects from the current recession for industrialized countries look very thin across the globe until the first half of 2013.”

Similarly, a recent report by the International Textile Manufacturers Federation said global yarn and fabric production registered increases in the second quarter of 2012 compared with the first three months, largely due to higher output in Asia, Europe and South America. Global yarn and fabric output is also expected to post increases in the third quarter due to projected gains in all regions — Asia, North America and South America — with the exception of Europe, where estimates are negative, it said.

The outlook for the fourth quarter also “remains stable, both for global yarn and fabric production,” with only European fabric production expected to slide further.

World yarn production during the period increased 7.4 percent, as a result of an 8.1 percent hike in output in Asia, including a 9.5 percent expansion in China, while Europe reported a 2.9 percent increase, and North America posted a 7.7 percent contraction, ITMF said. World fabric production also notched an increase of 3.5 percent, led by a 7.1 percent gain in South America and a 5 percent uptick in Europe.