CNTEX: Fixed-asset investment in textile industry slows in Q1-Q3 as curbs weigh on economy
Source: CTEI Date: 2008-12-02
Table 1. Investment in fixed assets in urban areas by industry (2008.01-09)
|
|
Investment |
Growth rate over the same period of the previous Year (%) |
|
urban areas |
9987.1 |
27.6% |
|
primary industry |
152.7 |
62.8% |
|
secondary industry |
4494.5 |
30.2% |
|
tertiary industry |
5339.8 |
24.8% |
Source: National Bureau of Statistics of China
Table 2. Fixed-asset investment in textile industry by sector (2008.01-09)
|
Sector |
Investment |
Growth rate over the same period of the previous Year (%) |
New project number |
Change of new project number |
|
total |
202269.04 |
10.15% |
4783 |
-468 |
|
cotton textile |
54013.94 |
-2.92% |
1258 |
-198 |
|
printing & dyeing |
6966.74 |
18.75% |
143 |
1 |
|
wool textile |
7181.72 |
31.27% |
168 |
25 |
|
linen textile |
2160.83 |
18.85% |
47 |
-7 |
|
silk |
4006.97 |
4.16% |
126 |
-19 |
|
finished products |
21979.37 |
10.88% |
528 |
-44 |
|
knitting |
16819.28 |
0.58% |
519 |
-80 |
|
garment and accessories |
62631.00 |
20.38% |
1709 |
-166 |
|
chemical fiber |
22170.66 |
18.57% |
194 |
22 |
|
textile machineries |
4338.53 |
16.39% |
91 |
-2 |
Source: National Bureau of Statistics of China
From January to September, the total fixed-assets investment in the textile industry was up 10.15% to RMB 202.269 billion year-on-year, but that was 22.98 percentage points less than the growth rate of the same period last year.
The amount put in cotton textile sector decreased 2.92% from year ago, 27.54% lower than the same period last year, and that for garment, chemical fiber and textile machinery sectors rose 20.38%, 18.57% and 16.39% respectively, still 25.36%, 29.92% and 35.29% lower from the figures achieved last year.
As long noted, China??s robust manufacturing output was largely being achieved through strong productivity of developed eastern provinces. However, over the past couple of years, China has been fastening its grand western development program, to boost the development of the middle and western land.
The data here illustrates the relative share change of production activities across China: From January to September, the amount put in Eastern Region decreased 0.61% from year ago, and that for Central Region and Western Region rose 32.75% and 40.35% respectively.
Table 3. Fixed-asset investment in textile industry by region (2008.01-09)
|
Region |
Investment |
Growth rate over the same period of the previous Year (%) |
Proportion
|
|
National total |
202269.04 |
10.15% |
100% |
|
Eastern Region |
126684.86 |
-0.61% |
62.63% |
|
Central Region |
56869.73 |
32.75% |
18.12% |
|
Western Region |
18714.45 |
40.35% |
9.25% |
Note: Due to the projects are not classified by the areas, hence, the accumulated value of investment of eastern, central, and western do not equals to the national total.??
The slowdown in fixed-asset investment that is the major engine for the industry would hamper technology improvement and innovation and further undermine investor confidence. Fortunately, the government recntly unveiled a stimulus package estimated at four trillion yuan over the next two years to boost domestic demand. The money is marked for programs in 10 major areas, such as low-income housing, rural infrastructure, water conservancy, electricity, transport, environment, technological innovation and rebuilding from disasters, most notably the May 12 earthquake.
However, it would be a while for the stimulus package to take effect on bolstering investments, and fixed-asset investment in textile industry would keep falling over the next couple of months.
