According to the industry research report, in the 1--8 months of this year, the profits of textile enterprises above Designated Size reached 73 billion 960 million yuan, an increase of 3.19% over the same period last year, and the profit growth rate dropped by 5.17 percentage points compared with that of May this year. Compared with last year's 1--11 month, the profit growth rate was significantly reduced by 33.79 percentage points, the lowest growth rate since 2001.

China Jiangsu news agency Xu Ruiping photo

From January to August this year, the profits of China's textile enterprises above designated size increased by three point one nine percent over the same period last year, and the profit growth rate was five point one seven percentage points lower than that of May this year, which is thirty-three point seven nine percentage points lower than that of November last year, the lowest growth rate of two 00 over the past year.

Experts from the China Textile Industry Association told reporters today that there are two main reasons for the sharp decline in profits of textile enterprises: first, the global economic growth slowed down significantly under the influence of the subprime crisis, and the industry boom was not as good as before; secondly, with the advent of the high cost Era, the profits of enterprises were continuously squeezed under the pressure of pferring the pressure from the downstream to the downstream.

At the same time, industry experts believe that the textile industry's profit decline is only a representation. What is most worrisome is that the "three carriages" pulling the textile economic growth have all been trapped in the plight of growth.

The latest statistics show that in August this year, China's textile and clothing exports grew by only seven point seven two percent, and the exchange rate factor had dropped by two point two five percent. In terms of investment, the textile industry actually completed eleven percent growth in fixed assets compared with the previous year in August. If taking into account the investment price index of the same period, the actual investment growth rate was only about three percent. However, the domestic demand which was highly expected by the industry was inhibited by multiple factors such as the weak growth of residents' income, and the actual growth was not optimistic. The growth rate of domestic clothing sales in August was only between 10% and 15%.

In addition, many people in the industry believe that the sharp decline in demand, China's textile and garment industry profit growth will be greatly reduced.