Driven by China's sustained efforts in stabilizing foreign trade, the comprehensive lifting of epidemic prevention and control measures, the resumption of work and production after the Spring Festival, and the concentrated shipment of accumulated goods, China's clothing exports (including clothing accessories, hereinafter the same) rebounded in March. According to China Customs statistics, clothing exports in March reached US\$13.48 billion, a significant increase of 32.3%. From January to March, China's cumulative clothing exports totaled US\$35.16 billion, down 1.3% year-on-year. The export data for the first quarter, especially for March, significantly exceeded expectations. Last March, China's clothing exports increased by 10.6% year-on-year. Achieving breakthrough growth against such a high base, and with the global economy slowing down and demand weakening, was indeed challenging.
From January to March, exports of knitted garments reached US\$15.32 billion, down 3.9% year-on-year, with an export volume of 4.53 billion pieces, down 8.1% year-on-year, and export prices up 4.3% year-on-year. Exports of woven garments reached US\$15.47 billion, up 2% year-on-year, with an export volume of 2.81 billion pieces, down 5.2% year-on-year, and export prices up 7.6% year-on-year. Exports of clothing accessories reached US\$3.28 billion, up 5.7% year-on-year.
In March, exports of both knitted and woven garments increased significantly, with export values increasing by 30.9% and 34.6% respectively, export volumes increasing by 21% and 25.5% respectively, and export prices increasing by 8.4% and 7.3% respectively.
Data from the US Bureau of Labor Statistics shows that the US CPI rose 5% year-on-year in March, the lowest level since May 2021, marking a significant slowdown in inflation. However, core CPI rose 5.6% year-on-year, indicating that price pressures for some goods and services are still rising. In February, the US apparel and accessories store inventory-to-sales ratio was 2.18, up 2.8% from the previous month, indicating a recovery in the inventory-to-sales ratio. In March this year, US retail sales increased by only 2.9% year-on-year, the lowest annual growth rate since June 2020; retail sales fell by 1% month-on-month, also the fourth decline in the past five months, reflecting a slowdown in the US economy and a shift in consumer spending habits. In March, retail sales of apparel and accessories stores reached US\$25.89 billion, down 1.7% from the previous month. It decreased by 1.8% year-on-year and increased by 14.7% compared to the same period in 2019.
According to the latest data released by the EU, Eurostat data shows that the eurozone inflation rate in March was 6.9%, slightly lower than 8.5% in February. Core inflation, excluding energy, food and alcohol prices, was 5.7%. Affected by the decline in energy prices, the eurozone inflation rate fell in March, but core inflation continued to rise and hit a new high. The latest data from Eurostat shows that retail trade in the EU fell by 0.9% month-on-month and 2.2% year-on-year in February. Non-food retail trade fell by 1% month-on-month and 1.9% year-on-year in February.
Due to repeated outbreaks of the epidemic and a general and sustained rise in prices, with price increases exceeding wage increases, real incomes have fallen, and Japanese consumers have further reduced spending. According to data from the Japanese Ministry of Economy, Trade and Industry, from January to February, Japan's textile and apparel retail sales totaled 1.33 trillion yen, up 6.1% year-on-year, but down 19.6% compared to the same period before the epidemic.
Overall, clothing exports improved month by month in the first quarter, with a stable start. Looking ahead to the full year, China's clothing exports still face considerable pressure. Firstly, the global economic growth rate is slowing down. In 2022, US interest rate hikes led to capital outflows from many countries, increasing the debt risk of developing countries, causing multiple currencies to depreciate. This, coupled with factors such as the Russia-Ukraine conflict, continues to have an adverse impact on global economic development. The International Monetary Fund's latest forecast is that the global economy will grow by 2.8% in 2023, down 0.1 percentage points from the previous forecast. Secondly, demand in major international markets is weakening. Although global inflation has fallen somewhat this year compared to last year, it remains high. The International Monetary Fund's latest forecast is that global inflation will fall from 8.7% in 2022 to 7% in 2023. In an environment of high inflation and high interest rates, the willingness of major international markets to consume clothing is declining. Thirdly, uncertainties surrounding foreign trade development are increasing. The intensification of global geopolitical turmoil, the further deepening of deglobalization, the lingering impact of COVID-19, and changes in the procurement strategies of major consumer markets all have a profound impact on China's clothing exports.
Faced with the current complex situation, through continuous exploration, China's clothing export enterprises have accumulated the ability to cope, and the clothing industry has shown strong resilience. This year, in response to insufficient external demand and various complex external environments, we must still adhere to high-quality development of foreign trade, continue to promote the transformation and upgrading of the clothing industry and foreign trade, and promote the stable scale and optimized structure of clothing foreign trade.
