Sept. apparel exports a record but loses growth velocity

Wednesday, 19 October 2022 00:00 - - {{hitsCtrl.values.hits}}

$ 451.46 m worth of shipments highest for the month in any year but year on year growth slows to 5%
Sept. fails to sustain three-month streak of over half a billion dollar performance
Exports to US falls first time in recent times but gains in EU, UK
First nine months exports at all-time high of $ 4.3 b up 18.4% year on year
Future outlook not promising due to challenges in major markets

Biggest foreign exchange earner apparel exports in September soared to record high for the month though year on year growth was the lowest in six months reinforcing industry concerns expressed over the future outlook.

As per provisional data, apparel exports in September amounted to $ 451.46 million up by only 4.89% from the corresponding month of last year. However, the September 2022 figure is the highest for the month beating the previous best of $ 451 million in 2018.

The 5% year on year growth is also the lowest in six months reaffirming industry views that going forward market conditions for exports will be challenging.

Prior to September, apparel exports have grown year on year by a high of 39% (June) and a low of 19% (August). In March export growth was flat.

September 2020 performance is also the lowest in four months and ended the three-month streak of over half a billion exports between June and August.

Exports to the US in September were down by 4% to $ 186.27 million whilst shipments to the EU were up by 15.7% to $ 141.52 million. Exports to the UK were up 3.5% to $ 56.67 million and other markets up 13% to $ 67 million.

Apparel exports in the first nine months were an all-time high of $ 4.3 billion, up 18.4% year on year. The previous highest for the first nine months was $ 3.97 billion in 2019.

Exports to the US were up 22% to $ 1.82 billion, EU by 15.8% to $ 1.26 billion, UK by 14.8% to $ 572 million and other markets by 17% to 639.8 million.

Joint Apparel Association Forum (JAAF) officials have indicated that despite impressive exports so far in 2022 industry envisages a 25-30% decline in the remainder of the year. This is because the economic downturn is impacting future orders from the US and EU whilst the war in Ukraine has pushed up logistics and energy costs. The US, EU and the UK comprise about 86% of Sri Lanka’s total apparel exports.