Apparel / Textiles & Accessories

The latest official import and export data shows that inflation in many Asian countries continued to decline from March to April this year, while clothing retail sales in major Asian markets such as China, Japan, and Singapore achieved growth. However, due to frequent interest rate hikes by the Federal Reserve and the European Central Bank in recent times, the cost of credit for the public has increased, real income has decreased, and purchasing power has been restricted. The clothing consumption performance of major economies in Europe and America is average, and there has not yet been a significant rebound.

In April 2023, the Consumer Price Index (CPI) in the United States increased by 4.9% year-on-year, dropping to its lowest level in two years. Excluding volatile food and energy prices, the core CPI of the United States increased by 5.5% year-on-year and 0.4% month on month in April, indicating that inflation in the United States is still operating at a high level and the pressure of price increases continues. In that month, the total retail sales in the United States increased by 1.6% year-on-year to $686.05 billion, the smallest increase since May 2020. In the same month, the retail sales of clothing (including footwear) in the United States reached $25.5 billion, a decrease of 0.3% month on month and 2.3% year on year, marking the third consecutive month of negative growth.

Import and export data shows that in March 2023, Canada's inflation rate significantly decreased to 4.3%, the lowest level since August 2021. In that month, the total retail sales in Canada increased by 2.4% year-on-year; The retail sales of clothing products were CAD 2.84 billion (approximately USD 2.09 billion), a decrease of 1% month on month and a year-on-year increase of 7.5%.

02. According to import and export data released by the Eurostat, the euro zone's April CPI was driven by a 7% year-on-year increase in alcohol and tobacco prices. In March of this year, the overall retail sales of the 27 EU countries decreased by 4.1% year-on-year, while the retail sales of the 19 eurozone countries decreased by 3.8% year-on-year, with an expansion of the decline compared to February.

The current global energy prices have fallen from high levels, and the energy supply pressure facing Europe has significantly reduced, helping the EU achieve a 0.3% GDP growth in the first quarter of 2023. According to the "2023 Spring Economic Outlook Report" released by the European Commission in mid May, the EU's economy is expected to continue to grow in the second quarter, and this year's economic growth forecast has been raised to 1.0%. However, due to wage growth lagging behind inflation in Europe, consumer spending may continue to be sluggish.

In March of this year, the retail sales of German clothing increased by 3.7% year-on-year; Dutch clothing retail sales decreased by 2.9% year-on-year; The retail sales of textile, clothing, and leather products in France reached 4.04 billion euros (approximately 4.33 billion US dollars), a year-on-year decrease of 2.3%.

In April, sales of textiles, clothing, and footwear products in the UK reached £ 4.33 billion (approximately $5.35 billion), an increase of 9.5% year-on-year and a decrease of 20% month on month.

From March to April 2023, inflation rates in many Asian countries continued to decline. The team of Chetan Ahya, Chief Economist of Morgan Stanley Asia, predicted in a report released at the end of April that inflation in most economies in the Asia region is expected to fall back to the comfortable range of central banks in the third quarter of this year.

Import and export data shows that in March this year, Japan's core CPI increased by 3.1% year-on-year, which is the same as February. In that month, Japan's overall retail sales increased by 7.2% year-on-year; The sales of textile and clothing reached 741 billion yen (approximately 5.27 billion US dollars), a sharp increase of 30.9% month on month and a year-on-year increase of 1.9%. The year-on-year growth of Japanese clothing imports in March exceeded 20%, which may be an important reason for the significant growth in Japanese clothing retail that month.

Türkiye's inflation rate fell to 50.5% in March, still high. In Türkiye, the retail sales of textiles, clothing and shoes increased by 12% year on year and 3.1% month on month.

In March, Singapore's inflation rate dropped to 5.5%, the lowest level in the past eleven months. In the same month, Singapore's clothing and footwear retail sales increased by 26.5% year-on-year and 9.6% month on month.

In April of this year, China's CPI increased by 0.1% year-on-year, and decreased by 0.6 percentage points compared to the previous month. In the same month, the sales of clothing, shoes, hats, needles, and textiles above the designated size in China reached 105.1 billion yuan, a year-on-year increase of 32.4%. With the overall domestic consumption continuing to improve, optional consumption such as clothing has rebounded against a low base background, and the growth rate in April continued to expand, with a strong recovery momentum.

04. In the first quarter of 2023, Australia's CPI increased by 7% year-on-year, significantly decreasing from the peak of 7.8% in the fourth quarter of last year. In March, high food prices drove a 0.4% month on month increase in Australia's retail sales, but all other categories of consumption experienced a decline. In that month, the retail sales of clothing, footwear, and personal goods in Australia reached AUD 2.94 billion (approximately USD 1.92 billion), an increase of 3.6% year-on-year and a decrease of 1% month on month. Due to rising interest rates and increasing pressure on the cost of living, non food retail expenditures such as clothing and household goods are showing signs of slowing down.

In the first quarter of 2023, New Zealand's inflation rate slowed from 7.2% in the previous quarter to 6.7%. From January to March, the retail sales of clothing, footwear and accessories in New Zealand reached 1.22 billion New Zealand dollar (about 740 million US dollars), up 13.4% year on year.

05. South America - Brazil

Brazil's inflation rate in March reached 4.65%, the lowest on record since January 2021. In that month, the retail sales of fabrics, clothing, and footwear in Brazil decreased by 4.5% month on month and 7.3% year-on-year. At present, the Brazilian central bank has further curbed inflation by maintaining the benchmark interest rate at a high point of 13.75%, and the increase in credit costs may have a negative impact on production and consumption, thereby affecting domestic economic growth.

Africa - South Africa

Import and export data shows that in March this year, South Africa's inflation rate continued to climb to 7.1%. In that month, the retail sales of textiles, clothing, footwear, and leather goods in South Africa reached 15 billion rand (approximately 760 million US dollars), an increase of 6.3% year-on-year.