Garment exports to the US rose 54.43 per cent year-on-year in the January-July period to hit $5.71 billion as the demand for locally made garment items is growing among American consumers, according to data from the country’s Office of Textiles and Apparel (OTEXA).
In fiscal 2021-22, Bangladesh’s overall shipments to the US amounted to $10.41 billion, around $9.01 billion of which were garments.
US imports of apparel items increased by 39.06 percent in the January-July period compared to the corresponding period the year before.
China remains the top supplier of apparel products for the US, registering 40.01 percent year-on-year growth in the January-July period, when US imports from China stood at $12.79 billion.
At the same time, US imports from Vietnam reached $10.91 billion with 35.30 percent year-on-year growth.
Other top exporting countries such as Indonesia, India, Cambodia, South Korea, and Pakistan also posted significant growth in shipments to the US during the same period.
The surge in the country’s imports is being caused by its ongoing recovery from the Covid-19 pandemic and increased shopping that resulted in retail sales growth.
However, the upward trend might not sustain in the fourth quarter of 2022 due to historic inflation levels, raise in Fed rates, downturn in economic growth compared to projections, and an anticipated recession in the country, a garment exporter said.
He then said the unusually long summer this year may also affect the winter clothing range.
“However, we observed that Bangladesh’s total export maintained significant growth until August 2022, which means US imports from the country might stay on a positive trend till September, and may falter afterwards as retail sales is affected by economic turmoil and buyers being cautious about overstock and current production,” he added.
