The economy of China and the United States is stabilizing and improving. In the first half of the year, China's GDP grew by 5.5% year-on-year. In July, the Politburo meeting clarified "increasing macroeconomic policy regulation" and "strengthening countercyclical regulation and policy reserves", and successively issued a series of policy documents such as "Opinions on Promoting the Development and Growth of Private Economy" and "Measures for Restoring and Expanding Consumption". It is expected that the implementation of various policies will help the economy rebound in the second half of the year, and the annual economic growth rate is expected to reach the predetermined target; The US economy remains resilient, with a growth rate of 2.4% in the second quarter, which is stronger than market expectations. The unemployment rate remains at a historic low, and the consumer confidence index has returned to its highest level in nearly two years. During the epidemic, the monetary deposits released by the US fiscal stimulus to residents still amounted to nearly one trillion US dollars, and the consumption potential remained strong in the short term. With the end of interest rate hikes and a decrease in inflation, it is expected that the demand for imported shoes and clothing will be released relatively quickly.

The textile industry is expected to improve. According to the Global Textile Industry Survey (GTIS) conducted by the International Federation of Textile Manufacturers (ITMF) in the first half of July 2023, the average operating condition of the global textile industry improved in July. Although it is still not optimistic, more and more textile enterprises have adapted to the harsh business environment. The order volume of clothing, home textiles, and industrial textile manufacturers has significantly improved, while the backlog of orders for South America and industrial textiles has increased. The survey shows that the global textile industry is gradually coming out of its slump and is expected to see a positive momentum of stabilization and recovery.

The inventory of shoes and clothing still needs to be digested. Due to factors such as loose fiscal stimulus, supply chain crisis, and tight shipping resources during the epidemic in Europe and America, developed countries such as Europe and America placed a large number of orders, resulting in high inventory of shoe and clothing brand merchants. Against the backdrop of consumption contraction such as interest rate hikes and inflation, high inventory led to a significant decline in shoe and clothing orders in 2023, indirectly causing a significant decline in demand for sewing equipment. It is expected that the impact of high inventory on orders will continue until the end of the third quarter or even the fourth quarter. According to statistical surveys, nearly half of fashion stores in Europe and America still have excess inventory after the first quarter. In the first half of the year, the inventory sales ratio of clothing wholesalers was more than 15% higher than the same period last year, and clothing imports from the United States, the European Union, the United Kingdom, and other countries decreased by an average of over 10% year-on-year.

The impact of interest rate hikes on inflation continues. From the perspective of interest rate hikes, there is currently a significant slowdown in interest rate hikes in the United States, and it is expected that interest rate hikes will stop within the year. Market expectations have improved, while the continued trend of interest rate hikes in Europe has not changed. There are signs of economic recession, and the economic contraction caused by interest rate hikes needs to be eliminated. From the perspective of inflation, although high inflation in Europe and America has significantly alleviated, the core inflation rate is still relatively high. High inflation has led to price increases, and durable goods consumption such as shoes and clothing has been significantly impacted. Statistics show that in the first half of the year, personal clothing and footwear consumption expenditure in developed countries such as Europe and America slowed down by about 6 percentage points compared to the same period last year, while retail sales in clothing stores slowed down by more than 12 percentage points compared to the same period last year, indicating a significant lack of consumption capacity.