Report: Textile industry faces slim profits

Profit margins in China’s textile industry averaged 3.9% in 2007, and two-thirds of companies claimed an average profit margin of 0.62% last year, according to a governement report of the sector, state media reported. The China National Textile and Apparel Council conducted the survey across six provinces and said that yuan appreciation and rising costs of materials and labor were the major reasons for reduced profit margins. Profit margin numbers for 2006 were not available. China’s textile and garment exports in February dropped 32.9% from the previous month on weakened US and European demand.