The prosperity index of China’s cotton textile industry was 48.1% in April, representing a decline of 4.3 percentage points from March this year. Beginning in early April, Trump initiated a global tariff war, leading to a sharp downturn in financial markets and negative foreign trade expectations. The cotton textile industry maintained a cautious mindset, with sluggish turnover and a challenging production and operational situation. The prosperity index fell below the boom-bust line, and several indicators suggested a relatively significant decline.

In April, the raw material purchasing index was 47.5%, 4.3 percentage points lower than that of March; the raw material inventory index was 49.9%, growing by 0.6 percentage points month-on-month; the production index was 48.0%, dropped by 6.7 percentage points from March; the product sales index was 46.9%, decreasing 5.7 percentage points month-on-month; the product inventory index was 49.1%, declining by 0.5 percentage points from the previous month, and the business index was 48.1%, down by 6.1 percentage points from March.

The prosperity index of China’s cotton textile industry is based on the weighed calculation of numerous main indicators of about 500 backbone cotton textile enterprises. A reading above 50% indicates expansion, while a reading below reflects contraction.

Figure: Prosperity Index of China Cotton Textile Industry

Source: CHINA TEXTILE LEADER Express