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Situation Still Grim, Company Confidence Return

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Confidence is returning

According to this survey, 64% of the entreprenuers mentioned not-optimistic for the overall situation of textile industry in 2008. 32.4% said normal. Only 3.6% said optimistic. While being asked for the situation of 2009, 59.1% said not-optimistic; 33.6% said normal; 7.3% said optimistic. From this point of view, we can say the entreprenuers have a little more confidence for this year.

In early Feb. the State Council authorized the invigorating plan for textile industry. The macro economy also shew some positive evidences. For example, the loan scale enlarged and PMI (Purchasing Manager Index) rised. Particularly, the garment export increased 5.7% in Jan. to the same period of last year, when the overal export dropped 17.5%. All of those gave confidence for the textile executives.

Expecting the policy being in effect

During the survey, the entreprenuers had complained that it was difficult to borrow money from banks for textile mills. 38% of them said they had floating capital problems. 35% of them had difficulty to get loan. Only 14% of them mentioned enough cash in operating. Although the currency policy had been changed already, but banks still were unwilling to lend money considering the economy outlook.  

Thus those companies expressed their hope that the local government help to solve this loan problem. They also hope the bank could lessen the loan condition for those who had good sales channel, plenteous orders, reasonable price and quality products, and lower the loan rate at the same time.  

Ways to meet the challenge

For those who could survive and even develop in the crisis, they are always adjusting themselved to fit the changes of market. Many companies chose the ways of innovation and technology upgrading.

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