by Zhao Xinhua

The prosperity monitoring results of the China Commercial Circulation Association of Textile and Apparel （CATA） show that in December 2020， the national textile and apparel specialized market managers prosperity index was 50.16， a decrease of 0.59 percentage points from Novembers 50.75； the specialized market merchants prosperity index was 50.80， a decrease of 0.66 percentage points from Novembers 51.46. In December， the prosperity index of the textile and apparel specialized market declined slightly on the basis of the peak sales season in November， and the prosperity index was generally better. In January 2021， the national textile and apparel specialized market managers prosperity index was 49.09， down 1.07 percentage points from 50.16 in December last year； the specialized market merchants prosperity index was 49.59， down 1.21 percentage points from 50.80 in December last year. In January， the prosperity of the textile and apparel specialized market declined due to the Spring Festival holiday and the pandemic.

December 2020

The prosperity index of managers and merchants are both above 50 - the threshold separating contraction from expansion

The data shows that in December， the various prosperity indexes of the national textile and apparel specialized market managers and merchants dropped slightly compared with November， but the overall prosperity index was above 50 - the threshold separating contraction from expansion.

· The managers prosperity index dropped by 0.59 percent.

· The merchants prosperity index dropped by 0.66 percentage points.

Data analysis

· The total operating index and logistics shipment index declined.

In December， the proportion of selected markets to increase the total business was 25.81 percent， which was 6.45 percentage points lower than the 32.26 percent in November； the proportion of selected markets to increase logistics shipments was 25.81 percent， which was 3.22 percentage points lower than the 29.03 percent in November. The total operating index and the logistics shipment index both showed a downward trend. With the end of the peak sales season in the second half of the year， sales in the specialized market declined slightly.

· Merchants costs and inventory pressure have eased

In December， the comprehensive cost index was 49.65， an increase of 0.63 percentage points from 49.02 in November； the inventory index was 50.14， an increase of 0.14 percentage points from 50.00 in November. Through a series of winter clothing promotion activities in December， the cost pressure and inventory pressure of merchants were slightly eased.

· In terms of predictive indexes， the four predictive indexes of managers and merchants all declined significantly. In December， due to the domestic pandemic， specialized market managers and merchants confidence in Januarys business conditions declined.

January 2021

The managers prosperity and merchants prosperity both fell

Data show that in January， the various prosperity indexes of the national textile and apparel specialized market managers and merchants dropped slightly compared with December last year.

· The managers prosperity index fell by 1.07 percentage points

· The merchants prosperity index dropped by 1.21 percentage points

Data analysis

· The total market operation and logistics shipment index declined

In January， the proportion of selected markets to increase the total business was 19.35 percent， which was 6.46 percentage points lower than the 25.81 percent in December last year； the proportion of selected markets to increase logistics shipments was 22.58 percent， which was 3.23 percentage points lower than the 25.81 percent in December last year. The total market operation index and the logistics shipment index both showed a downward trend. With the end of the peak sales season in the second half of the year， sales in the specialized market have fallen slightly.

· The merchant sales index and profit index declined

In January， the proportion of selected merchants to increase the total sales was 6.99 percent， which was 21.88 percentage points lower than the 28.87 percent in December last year； the proportion of selected merchants to increase profits was 6.99 percent， which was 17.66 percentage points lower than the 24.65 percent in December last year. The total sales index and profit index of merchants both showed a downward trend. With the Spring Festival holiday and the pandemic， the sales of merchants have been affected to a certain extent.

The overall prediction index is below the threshold of 50

In terms of predictive indexes， the four predictive indexes of managers and merchants are all below the threshold of 50. As the Lunar New Year is approaching， specialized market managers and merchants have a low forecast of business conditions in February.