Textile output surges, but apparel production stays in the red. What’s driving the divergence?

Textile output has surged, but apparel production remains in decline. This divergence in trends is evident in the latest government data, which shows a growth of 8 percent in industrial output for August 2026. The textile industry is driving this growth, with a strong 13.1 percent increase in production. Meanwhile, apparel production declined by 7.4 percent in the same month, indicating ongoing challenges for the sector. This trend could have implications for the overall manufacturing sector and its recovery.

Why it matters

Textile output is growing due to increased manufacturing, but apparel production is declining. This divergence may be due to various factors such as changes in consumer demand or supply chain issues.

Market impact

Transmission channels

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