Rising apparel prices will hinder US consumer spending

According to the US Cotton Corporation’s “Economic Express”, in the coming months, rising apparel prices will hinder consumers’ clothing consumption. Excluding seasonal factors, the CPI of apparel products increased by 1.1% month-over-month in January. Although the U.S. import prices have not changed significantly, it is expected that the recent increase in fiber prices will increase the retail price of apparel. The problem facing the market is whether economic growth and increased consumer confidence can support higher prices.

According to the latest U.S. import statistics, the number of cotton products arriving in December was slightly lower by 0.2% on a m2 basis compared to a year ago, and by 4.0% on an amount converted. In the past 2010, the total import volume of cotton products increased by 13.7% in terms of m2, while it increased by 11.1% in terms of amount. Last winter/spring prices reflected the consumption pressure during the recession, which also led to the recent lower unit prices for imports. In recent months, the import price of cotton products has increased, but the average import unit price is still lower than before the economic recession. In December, the inventory ratio of apparel companies rose from 2.27 to 2.34.