China’s textile industry posted a net profit of US$10.84 billion (RMB73.96 billion) in the first eight months of the year, up 3.19% on the same period last year, the China Securities Journal
reported, citing figures from Webtextiles.com. It is the slowest profit increase recorded since 2001. Wang Qianjin, chief editor of the website, attributed the slowdown to a tumbling global economy following the subprime woes, which prevented burgeoning costs from being passed on to consumers. The value of China’s textiles and garments exports climbed just 7.72% in the eight months to August, 2.25 percentage points slower than a year earlier if exchange rate movement is taken into account. Guojin Securities analyst Zhang Bin said the textile industry will continue on a downward trend in the fourth quarter and may report a negative profit growth for the whole of the year.