U.S. textile production growth slows, cotton consumption falls short of expectations

In 2014, the U.S. textile industry continued to increase investment and production. However, there are concerns about whether the amount of cotton used in factories can meet market expectations. According to the Federal Reserve’s report, U.S. industrial output data in November were better than expected, rising 5.2% year-on-year, with handmade manufacturing rising 4.8%. In that month, the textile production index was 80.8 (based on 100 production in 2007), a year-on-year increase of 2.9%, rising for 11 consecutive months, and production climbed to the highest point in 33 months.
Judging from the data over the past two decades, the amount of cotton used in U.S. factories has been basically consistent with changes in textile production. This year, USDA’s forecast for U.S. factory cotton consumption is 827,000 tons, a year-on-year increase of 7.0%. In fact, textile production continues to grow, but the growth rate is gradually shrinking, so we are skeptical that US cotton consumption can meet USDA expectations.