Editorial: Why are EU and US textile and clothing imports declining?

Editorial: Why are EU and US textile and clothing imports declining?

The world's two largest textile and clothing import markets--the EU and the USA--staged a strong recovery in 2021 and 2022 in the wake of the COVID-19 pandemic. This reflects the fact that buyers placed big orders based on forecasts of buoyant markets. But the recovery appears to have been short lived. Consumer confidence in the two markets has been massively impacted by sharp increases in commodity prices, energy costs and fuel prices--brought about, primarily, by the war in Ukraine. Living costs surged in the second half of 2022 and consumers began to cut back on their spending on textiles and clothing--leaving many retailers with high inventories. If the cutbacks by consumers persist, buyers will have little choice but to scale back on their purchases. This could have a significant impact on orders placed around the world and, ultimately, imports into the two major markets.