Apparel export to the United States, Bangladesh's single-largest market, dives with the January-October earnings having posted a 24.75-percent negative growth year on year to $6.35 billion year on year.
The downturn in export of the country's main exportable to the potential market in the ten months of 2023 is shown in US data, which the manufacturers attribute to a decline in demand.
As they mention, the demand fall is due to a combination of factors that include high inflation and the war in Ukraine that disrupts global trade and supply chains.
In terms of volume, too, the exports of readymade garments to the US market registered a yet deeper drop by 29.51 per cent year on year during the period under review, according to the US Department of Commerce's Office of Textile and Apparel (OTEXA) data released Thursday.
The trade statistics show Bangladesh's key competitors China and Vietnam also had to count negative export growth to the US market in the period -- altogether reflecting a dampened Western fashion appetite.
The country earned $8.44 billion during the January-to-October period last calendar year, which, according to OTEXA data, is $2.09-billion higher than the earnings in the first ten months of 2023.
During the period under review, the US imported from Bangladesh 1.94 billion square metres of garments, recording a 29.51-percent fall. In the January-to-October period of 2022, Bangladesh had shipped 2.76billion square metres of clothing items, according to OTEXA data.
Overall US imports of apparel from the world during January-October 2023 declined 22.71 per cent to $67.26 billion compared to $87.03 billion in the same period of 2022, data showed.
The US trade data reveal that Bangladesh witnessed a monthly negative growth of 36.50 per cent in October compared to the corresponding month of the previous year. The country shipped $578.35 million worth of apparel items in October, down from $910.72 million the same month in 2022.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice-president Md Shahidullah Azim says global demand for apparel, including that in the US, has been on a decline for a number of reasons and they have received fewer work orders for the past several months, which is reflected in the US disclosure.
"The decline in demand is due mainly to economic slowdown over there, which forced consumers to purchase less apparel as they are prioritising other needs," Mr Azim told the FE writer about the export fall at a time when Bangladesh needs much amid its forex-reserves fall.
Responding to a question on the US memorandum over labour rights with implications of possible sanctions, trade embargoes, he said negative growth had been witnessed for several months when the memorandum was not signed in.
The industry leader says there has been no impact on exports so far.
On November 16, US President Joe Biden signed in the memorandum, pledging to uphold advancing worker empowerment, rights, and high labour standards globally.
Elaborating on the memorandum, US Secretary of State Antony Blinken warned that sanctions, trade embargoes and visa bans would be imposed on individuals who threaten, intimidate or attack labour-union leaders, labour-rights activists and labour organisations.
On top of falling demand, manufacturers also have blamed inconsistent utility supplies weighing on the production lines.
Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), says factories are suffering the most due to their inability to utilise their full production capacity because of the gas crunch.
"Factories are unable to use their full capacity due to poor gas supply," he mentions.
According to OTEXA, Bangladesh's key apparel competitors China and Vietnam saw negative growth of 26.71 per cent and 23.80 per cent, respectively, during the January-October period.
US apparel imports from China stood at $14.17 billion during the period under review, down from $19.34 billion.
Vietnam exported apparel worth $12.22 billion during the first ten months of 2023 in a decline from $16.04 billion in the same period of 2022.
The data show US apparel imports from India and Indonesia having marked 21.32-percent and 25.26-percent fall to $3.94 billion and $3.67 billion during the January-October period, respectively.
America's imports from Cambodia fell by 25.90 per cent to $2.85 billion during the period, the data showed.
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