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Global Apparel and Textile Production Grew in Q2

United Nations report notes expansion was led by developing countries.

GENEVA — Global apparel production in the second quarter increased 3.7 percent and grew 4 percent for textiles compared with the same period last year.

The gains were led by developing economies, which were up 8.9 percent for apparel and 6.3 percent for textiles in the quarter, while output in industrialized nations declined 7.4 percent for apparel and 1.4 percent in textiles, a United Nations report said.

During April to June, apparel production among developing countries registered increases of 7.7 percent in China, a 2.9 percent increase in Turkey and 4.3 percent in Mexico, but saw declines of 1.9 percent in Brazil and 9 percent in politically troubled Egypt, the report by the Vienna-based U.N. Industrial Development Organization said.

In the same period, apparel output contracted 15.1 percent in financially strapped Italy, was down 1.5 percent in the U.S. and also fell 3.4 percent in Germany.

Similarly, textile output in the second quarter among developing economies showed an 8.3 percent gain in China, a 1.9 percent hike in Indonesia, a 1.4 percent rise in India and a 0.9 percent upswing in Turkey, but registered a 2.2 percent decline in Brazil and a 1.7 percent drop in Mexico. Among industrialized countries, textile production declined 4.1 percent in the U.S. and dipped 2.1 percent in Germany, while increasing 0.7 percent in Italy, the report said.

Overall global manufacturing posted a 2.2 percent increase in the quarter compared with the same period in 2012. Manufacturing output in industrialized countries contracted 0.2 percent, but increased 7.1 percent in developing economies, U.N. economists estimate.

U.S. manufacturing output rose 2.1 percent year-to-year, and was also up 2.6 percent in Germany and 1.5 percent in France, but fell 3.4 percent in Italy.

Among developing economies, China posted a gain of 9.6 percent, Bangladesh’s production grew 7.5 percent, Indonesia’s expanded 6.6 percent and Brazil saw a hike of 3.8 percent in the second quarter.

However, the report said manufacturing output was sluggish in India, growing only 0.2 percent.

“The recent plunge of the Indian currency to a record low is likely to affect the industries with a further rise in import prices and consequently, an increase in the cost of production,” the report said.

The UNIDO report noted that the latest estimates of world manufacturing output indicate production is expected to grow 2.7 percent in 2013 compared to 2.2 percent in 2012. It also noted visible signs of recovery in recession-hit European economies, but added that the current pace of manufacturing growth is fragile.