China: Home Textile Index Signals Ongoing Market Pressure

From 2018 to 2025, China’s GDP rose from RMB 90.03 trillion (6.6%) to RMB 140.19 trillion (5.0%), while the Dieshiqiao Climate Index trended downward, showing pressure on home textiles.

In 2020, GDP grew 2.2% during COVID-19 with order backflow boosting home textiles; in 2021, GDP rose 8.4% (RMB 114.92 trillion) but high PPI reduced profit margins.

GDP growth was 3.0% in 2022, 5.2% in 2023, and 5.0% in 2024–2025, with weak domestic demand and structural divergence impacting the sector.

Chemical fiber home textiles now contribute about 70% of exports, cotton share has declined, and PMI bottomed in 2024 before slightly improving in 2025.

For 2026, GDP is forecast at 4.5%–5.0% (median 4.8%), with bedding expected strong, curtains/upholstery weak, and towels stable.