Year-to-date through July, worldwide imports of clothing into the US have shrunk by 4.98 per cent during the first seven months of 2016. Of the top 10 markets that the US imports garments from, only Vietnam and Bangladesh showed growth in import consignments of 1.83 per cent and 1.12 per cent for the period.
Spending by US consumers declined slightly in July. Americans are increasingly spending less on clothes and home furnishings, a trend that could hurt Vietnam clothing exporters in years to come. Young people are spending more on expenses like rent, mobile phones, and personal services than they were a decade ago. This leaves less money for buying clothes. Other factors blamed for the slowdown are delayed inventory shipments, bad weather.
Overall exports from Vietnam to the US rose 1.83 per cent in the first seven months of 2016. As per estimates the share of clothing exports from Vietnam to the US could jump 10 per cent for the whole of 2016. This is based on the fact that work orders are coming in bulk and for higher value-added apparel items this year. Markets showing a year-on-year drop in imports into the US market for the seven-month period include China, India and Pakistan.