GENEVA — U.S. yarn production grew 5.6 percent in the second quarter compared to the previous quarter, boosted by the strengthening domestic economy, an industry survey said.
The increase was the second-best performance behind Asian yarn output, which rose by 14 percent, the International Textile Manufacturers Federation said Friday in a State of Trade report.
The study said estimates for yarn production for the third quarter “are positive” for Asia and the U.S., but remain unchanged in Europe. By comparison, yarn output in the second quarter in Europe registered only a 2 percent expansion and an even lower 1.4 percent increase in South America, analysts at the Zurich-based ITMF said.
Overall, global yarn production grew 13 percent quarter-on-quarter and yarn stocks increased by 2 percent worldwide, the survey said.
Brian Mandt, senior economist at ITMF, told WWD that expectations are “for continued gains” by the U.S. yarn industry, thanks in large part, he added, “to the American economy doing pretty well.”
But other factors are also contributing, he noted.
“We’re also seeing a small scale of near-shoring of production units transferring from Asia back to the U.S.,” he said.
Mandt was also upbeat on the potential impact of the 12-nation Trans-Pacific Partnership trade agreement, the text of which was released Thursday.
“TPP is, I think, definitely beneficial for the U.S. textile industry, especially with the yarn forward rules,” Mandt said.
The U.S. textile industry, he said, was on a downward trend for many years, but now “we’re seeing a stabilization and there are some indicators it’s improving.”
As for Asia, Mandt said India and other producers such as Vietnam could benefit from the economic slowdown and increasing costs in China. Those countries are trying to improve value chains in the textile industry, and this could also help counter some of the slowdown in China.
Labor costs in India, he said, “are still at a low level compared to China, where costs have risen quite strongly,” adding that India “has a lot of potential.”