the export of textile and clothing in May was $25.32 billion

In terms of export of textiles and apparels, the export of textile and clothing in May was $25.32 billion, a year-on-year decrease of 13.4%. From Jan to May, the export of textile and clothing was $118.2 billion, a year-on-year decrease of 5.3%. As expected, due to the decline in overseas demand and destocking, the export pressure is still significant. As the export in May-Jul of 2022 was relatively high, export of textile and clothing in Jun-Jul, 2023 is expected to still have a significant decline, with an estimated reduction at around 10%. With falling consumption of textiles and apparels and the destocking overseas, foreign trade orders are unlikely to improve significantly in the short term. It seems that the destocking period may be longer than market expectations, and the logic of overseas restocking in the second half of the year, which was originally expected by the market, may have a lower probability of occurrence, and the timing is expected to be pushed back to the fourth quarter. Therefore, there is still significant downward pressure on foreign trade exports in Q2 and Q3, and the opportunity for improvement is expected to be in Q4 at the earliest.