Red-hot US recovery boosts RMG hope
The strong performance of the US economy fuelled by the Biden administration's relief cheques to the persons and the ongoing rapid vaccination keeps promises for the recovery of Bangladesh's garment shipment to its single greatest export destination.
US monetary growth accelerated on the first quarter as the federal government gave money to mostly lower-income households, fueling consumer spending and environment the course for what's expected to get the strongest performance this year in nearly four decades.
GDP increased at a 6.4 per cent annualised rate in the January to March quarter, the biggest first-quarter expansion since 1984. That followed a 4.3 per cent growth rate in the fourth quarter, regarding to Reuters.
The ongoing vaccination has boosted the confidence of consumers because they are dining out, shopping and going on holidays. Retailers have reopened stores.
As a result, garment suppliers in Bangladesh are obtaining a higher quantity of queries for US-bound work orders.
Ha-Meem Group, among the leading garment exporters, offers higher orders from US-based buyers compared to two months ago.
"We are filled with orders up to July," said A K Azad, managing director of Ha-Meem Group. The US makes up about 90 % of the business's garment shipment.
"We are booked with orders for another two months," explained Kutubuddin Ahmed, chairman of Envoy Textile, another garment exporter.
Of the full total garment export from Envoy Textile, 60 % are destined for the US. American merchants and brands buy 75 % of the fabrics delivered. The sales of textile by the group had been $110 million this past year.
Bangladesh exported textile and garment worth $1.04 billion between January and February of 2021, down 11.80 % year-on-year, according to data from the US Department of Commerce.
It stood at $4.03 billion in the July-March amount of the existing fiscal year, slightly down from $4.37 billion recorded through the same period a year ago, data from the Export Promotion Bureau of Bangladesh showed.
The demand for everyday wear is greater than formal clothing and high-end value-added suits as persons spend additional time indoors as a result of the pandemic.
The business enterprise of high-end brands like Nike and Banana Republic was lower as the low-income customers prefer cheaper products during crises, Azad said.
The prices of the goods have remained almost exactly like the retailers and brands are not increasing them on the excuse of the fallouts of Covid-19, the entrepreneur said.
With better weather, savings accumulated throughout a much time year of lockdowns, and an itch to create up for forced inactivity, Americans could have a lot of reasons to venture out and spend, the New York Times said within an article.
Helped by several rounds of government pain relief payments, households were seated on a collective $4.1 trillion in savings in the first quarter, up from $1.2 trillion before the pandemic began.
Faruque Hassan, president of the Bangladesh Garment Companies and Exporters Association, is hopeful that the recovery of the US economy would help the garment shipment to American market segments make a turnaround.
"The orders from American customers have already been better in the last fourteen days. We are well informed as a result of the vaccination efforts."
