American RMG exports decreased by 24.75% between January and October

 American RMG exports decreased by 24.75% between January and October

Bangladesh, however, continued to hold its ranking as the third-largest garment exporter, according to US statistics.

In the first 10 months of this year, Bangladesh's garment exports to the US, its biggest single-country market, fell by 24.75% year over year to $6.35 billion.

The major cause of this loss was the considerable drop in US market demand for clothing over the previous year as a result of rising inflation.

During the same time last year, apparel shipments totaled $8.45 billion.

Data from the US Commerce Department's Textiles and Apparel Office showed that, in volume terms, Bangladesh's RMG exports to the US fell 29.51% to 1.95 billion square meters from 2.41 billion square meters over the same time.

According to the report, October's apparel shipments decreased 36.50% over the previous year to $578.35 million.

In the first ten months of 2023, US garment imports from throughout the globe fell by 22.71% to $67.26 billion, from $87.03 billion in the same time the previous year.

According to US statistics, from January to October of 2023, Bangladesh's share of the US clothing market was steady at 9.54%, making it the third biggest exporter, after China and Vietnam, with shares of 20.71% and 18.01%, respectively. Continue on. correspondingly.

Three factors contributed to reduced profits compared to the same time last year, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Farooq Hasan: a slowdown in the demand for garments globally, a drop in unit pricing, and labor disruption in November. Production fell as a result of the turmoil.

He did note, however, that several labels had already emptied their inventory in advance of the height of the holiday sales, suggesting that the garment industry is seeing some encouraging indications of revival in the next months.

The president of the BGMEA said that December is a period for festivals, such as Boxing Day and Christmas, and that retailers in Western nations had strong sales this year.

The head of the garment industry laid the foundation for a healthy economic trend, stating that after around 18 months, most nations ceased hiking interest rates as inflation began to drop.

According to the industry leader, there is a downward trend in global fuel prices and freight costs, which is indicative of businesses picking up again.

The president of BGMEA had previously said that Bangladesh was outperforming its competitors and that the size of the garment market in the US and the EU was declining.

He blamed the current downturn in Bangladesh's garment exports on trade estimates and the bleak prognosis for the world economy, pointing to a year-long fall in demand and orders.

"2023 will not be a favorable year for the apparel trade," according to Farooq Hasan, who forecasted a major fall in the global apparel trade this year.