Latest news with #ExecutiveCottonUpdate
Fibre2Fashion
18-07-2025
- Business
- Fibre2Fashion
US' garment CPI down in May, spending rises despite tariff uncertainty
The US apparel sector is navigating a turbulent mid-year, with May data showing a -0.4 per cent decline in the Consumer Price Index (CPI) for garments month-over-month (MoM) and a -0.7 per cent drop year-over-year (YoY). Despite the decrease, garment prices remain higher than the 2012–14 average and among the loftiest since the early 2000s, according to Cotton Incorporated. Apparel imports dropped sharply in May, falling -22 per cent by weight after a brief rebound in April (+3.3 per cent). This follows a sustained seven-month surge from September 2024 to March 2025, when volumes were up +15.2 per cent year-over-year. The pullback in May reflects the first clear reaction to tariff hikes that took effect in April. Consumer spending on clothing rose +1.1 per cent in May, up +4.9 per cent year-on-year—more than double the 12-month average of +2.3 per cent—indicating relative resilience despite broader economic concerns. Overall consumer spending, however, declined -0.3 per cent month-over-month, and annual growth slowed to +2.2 per cent, the weakest pace since February 2024, Cotton Incorporated said in its Executive Cotton Update - US Macroeconomic Indicators & the Cotton Supply Chain, July 2025. US apparel CPI fell -0.4 per cent MoM and -0.7 per cent YOY in May, but prices remain historically high. Imports plunged -22 per cent after early tariff hikes, while spending on clothing rose +4.9 per cent YoY. Consumer confidence dipped and overall spending slowed. Tariff frameworks for August 1 propose higher rates, including 40 per cent on transhipped goods via Vietnam. Consumer sentiment showed signs of strain, with the Conference Board's Index of Consumer Confidence dipping 5.4 points to 93 in June, following a May recovery from April's pandemic-era low. Trade tensions continue to weigh on market sentiment. As of early July, tariff frameworks were released with implementation delayed to August 1. These maintain the 10-percentage point tariff hike introduced in April while proposing steeper duties, including a 40 per cent tariff on transhipped goods via Vietnam. Final agreements remain under negotiation, and clarity is lacking on how transshipment and component transformation rules will be enforced. Adding to the complexity, a major US legislative package passed in early July phases out duty-free de minimis shipments (under $800) by July 2027—a move that could reshape e-commerce trade flows. Meanwhile, the Federal Reserve maintained interest rates in June and trimmed its US GDP forecast for 2025 to +1.4 per cent (down from +1.7 per cent in March), signalling a more cautious economic outlook. The US added 139,000 jobs in May, though previous months saw downward revisions. The unemployment rate held steady at 4.2 per cent, still low by historical standards, while wage growth slowed to +3.9 per cent year-over-year. Fibre2Fashion News Desk (KD)
Fibre2Fashion
11-06-2025
- Business
- Fibre2Fashion
US garment spending dips, imports rise amid tariff uncertainty
US consumer spending on garments fell by 0.7 per cent month-over-month in April 2025, despite a 4.6 per cent year-over-year increase. The CPI for garments also dipped by 0.1 per cent month-over-month and 0.5 per cent year-over-year, according to Cotton Incorporated. Meanwhile, imports of cotton-dominant apparel rose 13.4 per cent from a year earlier, maintaining average import costs near $3.70 per square meter equivalent since late 2023. US garment spending fell 0.7 per cent in April despite a 4.6 per cent annual rise, while cotton-dominant apparel imports rose 13.4 per cent year-over-year. Garment CPI declined slightly, and import costs remained stable. Tariff uncertainty looms as courts challenge the President's authority under IEEPA. Job growth slowed to 139,000 in May, with unemployment steady at 4.2 per cent. This import activity occurred amid ongoing trade uncertainty. In April, the US began implementing broader tariff increases, prompting mixed responses from retailers—some pulled orders forward to avoid higher duties, while others delayed shipments in hope of a rollback. The situation was further complicated in late May by two court rulings that questioned the President's authority under the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariff changes. These decisions, now under appeal, may escalate to the Supreme Court, with existing tariff rates currently remaining in place, Cotton Incorporated said in its Executive Cotton Update - US Macroeconomic Indicators & the Cotton Supply Chain - June 2025. The US economy added 139,000 jobs in May, though prior months were revised down. The unemployment rate held steady at 4.2 per cent—its highest since 2021, yet historically low. Wage growth continued to moderate, rising 3.9 per cent year-over-year. Consumer confidence rebounded in May, with the Conference Board's Index rising by 12.3 points to 98 after five consecutive months of decline. Broader consumer spending rose just 0.1 per cent in April, following a strong 0.7 per cent increase in March. Ongoing tariff negotiations are set to conclude by July 9 for most partners and mid-August for China. If unresolved, reciprocal tariffs may take effect, posing further challenges for retailers and global supply chains. Fibre2Fashion News Desk (KD)
