Sales at apparel stores had already increased by 10.30% in February, the highest rate in several years. .
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Official data were already confirmed by largest US retailers with number one Gap Inc. last Thursday announcing a 8% increase in comparable sales in March. .
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Limited even reported a 15% jump in sales at stores open at least a year ago. .
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As a clear sign of a rebound in consumer confidence, apparel specialists and their latest fashion trends were favored by consumers. .
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Department stores also reported a double-digit growth in comparable sales in March. .
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The surge in US consumer spending was generated by a series of factors, including huge tax cuts offered by Bush administration, a rebound in stock markets, an extremely low level in US interest rates and a sharp recovery in the number of new jobs in March.As a result of this surge in sales, US apparel importers could substantially raise orders to low-cost countries in the coming weeks and months. .
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A rebound in the US dollar would further boost demand from US buyers. The American currency is already falling against the euro, Tuesday reaching a four-month low at 1.19 euro for one US dollar. .
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A continued decrease in the US dollar would help EU economy in recovering, in addition, boosting demand from EU consumers as a result. .
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Retail sales were stronger in the European Union in the first two months of the year, according to EU latest data. Consumer spending surged in the UK while also improving in France, Spain and Sweden, although slightly down in Germany. .
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Retail sales of textile, apparel and footwear were finally up a healthy 2.6% in February, from the same month last year, after declining in previous months. .
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In addition to better sales at US and EU retail and a rebound in the US dollar, the current fall in cotton prices could also generate a recovery in global textile market. .
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After surging in October and November, cotton prices were substantially down in the past three months, although demand from China remained very strong. .
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Since stocks are relatively low at mills of major textile producing countries, any rebound in apparel orders would result in a sharp surge in textile production, as usual.
Date:4/15/2004
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