According to the US Department of Agriculture (USDA), recent apparel trade data (chapters 61 and 62 of HS code) shows, China's recovery of apparel sales has been faster than in any other countries. However, the speed of recovery in consumer demand is uncertain, and the impact of working remotely is not known. Global apparel imports dropped dramatically in April and May, with US imports for May down 55 per cent from the previous year. EU and UK imports were down over 40 per cent, while Japan fell 30 per cent in the same period.

The decline in textile and garment exports was felt in all major markets, but not equally. Exports from Bangladesh and India fell by 85 and 90 per cent respectively, while shipments from Pakistan, Turkey, and the European Union witnessed 60-per cent declines. Vietnam textile and garment exports fell roughly 30 per cent, the USDA report said.

The impacts of COVID-19 hit both demand and supply at the same time. Lockdown restrictions slowed consumer spending while also halting cotton-related processing. Spinning mills’ operating rates in India, Pakistan, and the United States fell over 90 per cent, while declines were slightly lower in China. Similar to the export data, Vietnam’s operating rate declined by only 30 per cent.

Recovery in the spinning sector has also been uneven – COVID-19 first impacted China and coincided with the Chinese New Year holiday. China’s recovery is faster than in many other countries, with operating rates returning to near pre-COVID-19 levels in 3 to 4 months. However, the speed of recovery in consumer demand is uncertain, since recent apparel imports include deferred demand as consumers made purchases that were initially delayed.