Garment Exports to USA Rise 11.15% in August

Despite an overall downturn in the US apparel import market, Bangladesh recorded robust growth in readymade garment exports to the country in August. According to the latest data from the US Office of Textiles and Apparel (OTEXA), US apparel imports from Bangladesh rose by 11.15% compared to the same period last year. However, on an aggregate basis for the January-August period, Bangladesh remains down by 4.43%, with apparel exports totaling $5.39 billion compared to $5.64 billion during the corresponding period last year.

During the same eight-month period, total US apparel imports dropped by 7.42% to $49.8 billion. Import volumes across the overall US market also contracted by 8.98%. Comparatively, Bangladesh’s export value declined at a lower rate than the overall US market trend. Bangladesh’s position is even stronger in terms of export volume, declining by just 2.75% during January-August compared to the nearly 9% drop seen in overall US apparel import volumes.

Bangladesh’s relative resilience is underscored when compared to key competing nations. Between January and August, US apparel import values from China sank by 29.39%, India fell by 26.44%, and Pakistan registered a decline of 3.83%. Vietnam saw a slight dip of 0.76%. Conversely, Indonesia and Cambodia maintained positive growth, with US apparel imports rising by 2.58% and 6.91%, respectively. The strong August performance serves as the most promising signal for Bangladesh. Despite the overall eight-month decline, the 11.15% jump in a single month suggests that demand for Bangladeshi garments in the US market is beginning to turn around in the second half of the year.

Beyond export volumes and values, global market dynamics are exerting pressure on unit prices. From January to August, the average unit price of Bangladeshi garments fell by 1.73%. During the same period, unit prices dropped by 9.93% for China, 2.04% for India, 3.57% for Pakistan, and 5.49% for Indonesia. Meanwhile, the overall average unit price of US apparel imports increased by 1.71%. This indicates that while average market prices rose overall, unit values for major Asian suppliers faced downward pressure, highlighting intensifying price competition in the international apparel market.