In the first half of 2022, the global economic recovery was sluggish, and many key consumer markets in the world were mired in inflation. Record-high CPI, fragile and unstable supply chains, overt or covert trade barriers, and repeated epidemic nuisances continue to affect the healthy and sustainable development of textile and apparel retail.
Facing the complex and severe economic situation, under the positive and negative effects of the loosening of epidemic restrictions and the squeeze of inflation, how to stimulate market vitality, boost consumer confidence, and then promote stable economic development has become a core concern of many countries’ economic governance.
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The U.S. Consumer Price Index (CPI) in June increased by 9.1% year-on-year and 1.3% month-on-month. Both the month-on-month and year-on-year increases were significantly expanded compared with May, and the year-on-year increase reached a new high. U.S. retail sales in June increased by 1% month-on-month to $680.6 billion, a year-on-year increase of 8.4%. In the same month, U.S. apparel (including footwear) retail sales were US$25.76 billion, a slight decrease of 0.2% year-on-year. The continued rise in inflation has pushed up the prices of a variety of daily consumer goods, and “optional consumer goods” represented by clothing, shoes and hats are facing greater sales pressure.
In May, Canada’s CPI rose 7.7% year-on-year, reaching the highest level in 40 years. In the same month, total retail sales in Canada increased by 14.1% year-on-year; sales of clothing supplies were 2.51 billion Canadian dollars (approximately 1.96 billion U.S. dollars), a significant increase of 93.7% due to the low base effect last year.
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In June, inflation in the Eurozone rose to 8.6%, reaching a historical high due to the continued surge in energy prices; inflation rates in the United Kingdom, France, Italy and other countries also rose. Official data shows that the retail sales growth of clothing products in European countries began to slow down in May, and the low base effect in the same period last year gradually weakened.
In May, German clothing retail sales increased by 71.4% year-on-year; Dutch clothing retail sales increased by 15.7% year-on-year; French textile, clothing and leather products retail sales were 4.56 billion euros (about 4.65 billion U.S. dollars), an increase of 360 million euros (about 367 million U.S. dollars) from April USD), the best monthly sales this year. Compared with the same period last year, French retail sales of textile, clothing and leather products increased by 6.3% year-on-year in May.
Sales of textiles, clothing and footwear products in the UK in June were 5.03 billion pounds (about 6.12 billion US dollars), a year-on-year increase of 12%.
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Many Asian countries are also suffering from imported inflation. From May to June, among many Asian economies, except for a few countries such as China, Japan, and Malaysia, the inflation rate in most Asian countries exceeded 3%.
In May, Japan’s textile, clothing and apparel sales were 763 billion yen (approximately US$5.67 billion), a year-on-year increase of 11.8%. Inflation in Turkey reached 73.5% in May. Retail sales of textiles, clothing and footwear increased by 58.2% year-on-year and decreased by 1.6% month-on-month.
Singapore’s retail sales of clothing and footwear surged 98.2% year-on-year in May, showing a trend of “retaliatory consumption”. Singapore’s further relaxation of epidemic prevention measures and significant relaxation of entry restrictions have accelerated the rebound in consumption of clothing products.
In June, my country’s CPI increased by 2.5% year-on-year, a steady increase; sales of clothing, shoes, hats, needles and textiles above designated size were 119.8 billion yuan, a year-on-year increase of 1.2%, the growth rate turned from negative to positive, and textile and clothing consumption further recovered. As the epidemic stabilizes and a number of consumption-promoting policies are further implemented and come into effect, it is expected that my country’s textile and apparel consumption will continue to stabilize and improve in the second half of the year.
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Oceania – Australia
Australia’s retail sales of clothing, footwear and personal products reached 2.87 billion Australian dollars (approximately 2.01 billion U.S. dollars) in May, a year-on-year increase of 14.6%, and consumer demand continued to develop steadily.
South America – Brazil
In the first five months of this year, Brazilian retail sales increased by 1.8%. Under the influence of inflation, the consumer confidence of Brazilian residents has been weakened, and the sales of textile and clothing products have not been significantly affected. In May, sales of textile, clothing and footwear products in Brazil increased by 8.3% year-on-year and 3.5% month-on-month.
Africa – South Africa
In May, affected by the Russia-Ukraine conflict and rising interest rates in the United States, South Africa’s CPI increased by 6.5% year-on-year, reaching the highest level since 2017. In that month, the retail sales of textiles, clothing, footwear and leather goods in South Africa was 16 billion rand (approximately US$970 million), the best monthly sales this year, but it fell 4% year-on-year, and the growth rate turned negative for the first time in five months. Currently, South Africa is entering the peak of the fifth wave of the COVID-19 epidemic. Coupled with the frequent occurrence of extreme weather and climate disasters, it may have a great impact on South Africa’s consumption recovery.
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