INTERNATIONAL
Textile Raw Material Price 2016-12-22
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1223.32 |
USD/Ton |
0% |
12/22/2016 |
|
VSF |
2302.72 |
USD/Ton |
1.27% |
12/22/2016 |
|
ASF |
1842.18 |
USD/Ton |
0% |
12/22/2016 |
|
Polyester POY |
1259.3 |
USD/Ton |
0% |
12/22/2016 |
|
Nylon FDY |
3123.06 |
USD/Ton |
0.46% |
12/22/2016 |
|
40D Spandex |
4346.38 |
USD/Ton |
0.67% |
12/22/2016 |
|
Polyester DTY |
5457.45 |
USD/Ton |
0.05% |
12/22/2016 |
|
Nylon POY |
1503.96 |
USD/Ton |
0% |
12/22/2016 |
|
Acrylic Top 3D |
2950.36 |
USD/Ton |
0% |
12/22/2016 |
|
Polyester FDY |
2014.88 |
USD/Ton |
0% |
12/22/2016 |
|
Nylon DTY |
1619.1 |
USD/Ton |
0% |
12/22/2016 |
|
Viscose Long Filament |
3324.55 |
USD/Ton |
0.43% |
12/22/2016 |
|
30S Spun Rayon Yarn |
2935.97 |
USD/Ton |
0% |
12/22/2016 |
|
32S Polyester Yarn |
1850.81 |
USD/Ton |
0% |
12/22/2016 |
|
45S T/C Yarn |
2633.74 |
USD/Ton |
0% |
12/22/2016 |
|
40S Rayon Yarn |
3065.5 |
USD/Ton |
0% |
12/22/2016 |
|
T/R Yarn 65/35 32S |
2259.54 |
USD/Ton |
0% |
12/22/2016 |
|
45S Polyester Yarn |
1971.7 |
USD/Ton |
0% |
12/22/2016 |
|
T/C Yarn 65/35 32S |
2216.37 |
USD/Ton |
0% |
12/22/2016 |
|
10S Denim Fabric |
1.32119 |
USD/Meter |
0% |
12/22/2016 |
|
32S Twill Fabric |
0.81315 |
USD/Meter |
0% |
12/22/2016 |
|
40S Combed Poplin |
1.1456 |
USD/Meter |
0% |
12/22/2016 |
|
30S Rayon Fabric |
0.65484 |
USD/Meter |
0% |
12/22/2016 |
|
45S T/C Fabric |
0.64764 |
USD/Meter |
0% |
12/22/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14392 USD dtd. 22/12/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The government is set to review its ambitious plan to achieve goods and services exports of $900 billion by 2020 as it becomes evident that the target is likely to be missed, given the current global scenario. The government had set the ambitious target last year for goods and services exports, which were about $421billion in 2014-15. “The exports target looks difficult to meet. I can’t say what the new target will be at this point of time, but we will do a mid-year review of the foreign trade policy soon,” said a senior commerce ministry official. The review, aimed at taking corrective steps by assessing the impact of export sops on various sectors, will begin soon. “Looking at the global challenges, $900 billion is completely ruled out. In fact, whether we can reach $750 billion exports is also a question,” said another official privy to the details. However, no decision has been taken on revising the existing target or setting a new one.
Growth of India’s total goods exports in April-November 2016-17 was flat compared with the same period in the previous financial year. Services exports dipped 4.79% to $13.11 billion in October, according to Reserve Bank of India data. For FY17, industry expects merchandise exports to be $270-280 billion and services exports at less than $150 billion. The World Trade Organisation trimmed its forecast by over 1percentage point as it expects global trade in 2016 to grow at the slowest pace since the financial crisis. The downgrade follows a sharper-than-expected decline in merchandise trade volumes in the first quarter, it said in September. The organisation expects global trade to grow 1.7% this year compared with its previous forecast of 2.8% and an estimate of 3.9% made in September 2015.
The WTO scaled down its forecast for 2017 to between 1.8% and 3.1% from 3.6% previously. Stakeholder consultations for the midterm review are likely to begin from January 15 and the exercise should end by September 2017. “A mid-term review will happen and then the government will take a call on export target and incentives,” said Ajay Sahai, director general of the Federation of Indian Export Organisations. At present, the commerce department extends assistance to exports under incentives such as interest equalisation scheme to boost shipments. According to the WTO, the outlook for the remainder of this year and next year is affected by uncertainties, including financial volatility stemming from changes in monetary policy in developed countries, the possibility that growing anti-trade rhetoric will increasingly be reflected in trade policy, and the potential effects of the Brexit vote in the UK.
SOURCE: The Economic Times
The Indian textile industry is expected to attract Rs. 1 lakh crore investments in technical textiles by 2025, according to M. Senthil Kumar, chairman of Southern India Mills’ Association. At a conference on technical textiles and non-wovens organised by Federation of Indian Chambers of Commerce and Industry here on Thursday, Mr. Senthil Kumar said of the 12 major technical textile items, packtech has the largest share with 42 per cent. The next are industrial textiles and home textiles, each accounting for about 10 per cent.
Technical textiles
Technical textiles is one of the fastest growing segments in the textile industry and has registered annual compounded growth rate of 11 per cent. It has the potential to grow to 20 per cent. However, the production capacity is currently focused on commodity products and not on innovative ones. The industry should make investments in technology, especially in Tamil Nadu, to tap the potential in technical textiles. According to a presentation made by an official of the Regional Office of the Textile Commissioner here, the technology mission on technical textiles launched in 2010 with an outlay of Rs. 200 crore was extended till the end of this financial year with an additional outlay of Rs. 55.2 crore. Agrotech is a potential area that industries should look at in technical textiles.
According to Raja M. Shanmugham, president of Tirupur Exporters’ Association, Tirupur aims to touch an annual turnover of Rs. 1 lakh crore by 2020 from the current Rs. 36,000 crore. Industries in Tirupur need to look at different products, including technical textiles, to achieve this. The Central Government should establish centres of excellence in hubs such as Tirupur. K.G. Balakrishnan, chairman of KG Group, said the market for technical textiles is growing at 12 per cent annually because of increasing consumption, income, and industrial use.
SOURCE: The Hindu
Lack of awareness and lesser penetration in rural areas was the reason the vast potential in the technical textile sector could not be tapped properly,a senior Textile Commissioner official said, even as major textile associations extended support for the sector's growth. Though the sector is growing at a Compounded Annual Growth Rate (CAGR) of 11.8 per cent and was expected to reach Rs 1.16 lakh crore by 2018, major products are being imported, with domestic manufacturers confining to limited products, Deputy Director in Textile Commissioner's office T L Balakumar said. He was speaking at a seminar-cum-exhibition on 'Investment Opportunities in Technical Textiles and Non-wovens,' organised by FICCI and office of the Textile Commissioner.
Balakumar said 932 of 2220 manufacturing units functional in India are registered with his office and are confined to making woven socks, tyre cord fabrics, sport shoes components, industrial textile and fishnets, with huge potential in the automotive and geotextiles remaining untapped properly. The Government under the scheme of promoting usage of geotextiles in the North East Region had allocated Rs 427 crore for five year period from 2014-15 and Rs five crore for the rest of India, he said.
Tirupur Exporters Association President Raja M Shanmugham said the knitwear hub had been concentrating on non-aesthetic wear all these days and wanted to diversify to functional wear. To achieve the targeted turnover of Rs one lakh crore by 2020 from the present Rs 36,000 crore, both domestic and exports, Tirupur may also tap the technical textile segment, he said and requested the Centre to start a 'Centre of Excellence' in the city. Southern India Mills' Association chairman M Senthilkumar said that with a 11 per cent CAGR, technical textiles contributed 12 per cent of the Indian textile industry and has the potential to increase it to 20 per cent. Being a part of textile industry, textile mills would extend any support for making investments in technical textiles and non-wovens and make it a success,he said.
SOURCE: The Business Standard
In a concerted bid to pull the beleaguered textile mill sector out of the woods, the state government has drawn up plans to infuse Rs 160 crore as one-time payment to restore its earlier titanic self. And Industries Minister A C Moideen is scheduled to meet the trade union leaders on Friday to discuss the revival package. “We hope that there will be steps for concrete action at Friday’s talks. The fund infusion should be followed up with proper monitoring.” said Vijayan Kunissery, general secretary, Textile Federation (AITUC).
Up to 4,000 employees were hit as five mills had been forced to close down in the last four months, with widespread retrenchments. The funds will be used for restarting production, mechanisation and payment of salaries. “Besides funding, we are looking at a centralised system to purchase cotton, provide school uniform contract to weaving mills, steps to improve efficiency etc,” said chairman of public sector Restructuring and Internal Audit Board (RIAB) M P Sukumaran Nair. The government had roped in the RIAB to suggest ways to revive the mills. And Chathannoor Spinning Mills (CSM) — the first spinning mill in the cooperative sector in Southern Kerala — is a classic instance of the hard times that the sector has fallen upon. From a profit making enterprise, CSM presently runs up losses to the tune of Rs 70 lakh. Not only that, over 350 families have been affected following the lay-offs announced in December. Earlier,Trade unions under the banner of the Textile Federation submitted a joint representation to the LDF Government for a revival package. The erstwhile UDF Government had provided Rs 125 crore for the mills from 2011-2015. However,the trade unions accused the textile managements of gross mismanagement.
SOURCE: The New Indian Express
New research has claimed that slavery, including child labour, are present in more than 90 percent of south India's spinning mills which produce yarn for large Western brands. The research casts fresh light on the issue and calls for the mapping of supply chains and tougher audits on those purchasing yarn from the mills in question. The India Committee of the Netherlands (ICN), a human rights organisation, spoke to workers from almost half the mills in Tamil Nadu, the largest producer of cotton yarn in the country.
Most female workers employed in the 734 mills involved in the research were aged between 14 and 18, it said, and up to 20 percent of the workers were younger than 14. It said employees were forced to work long hours by employers who often withheld their pay or locked them up in company-controlled hostels. Many also claim to face sexual harassment. 'We have raised the issue for five years now, but even to us the scale of this problem came as a shock,' ICN Director Gerard Oonk said in a statement. K. Venkatachalam, chief advisor of the Tamil Nadu Spinning Mills Association, said he was not aware of the research. He said the state government had recently filed a report to the Madras High Court 'clearly stating that these issues are no longer prevalent in the industry'. 'The matter has been closed,' Venkatachalam told our reporter.
'Torture'
India is one of the world's largest textile and garment manufacturers. The southern state of Tamil Nadu is home to some 1,600 mills, employing between 200,000 and 400,000 workers. Traditionally the dyeing units, spinning mills and apparel factories have drawn on cheap labour from villages across Tamil Nadu to turn cotton into yarn, fabric and clothes, most of it for Western high street shops. Most workers are young women from poor, illiterate and low-caste or 'Dalit' communities, who often face intimidation, sexually offensive remarks and harassment.
ICN said in more than half of the mills it researched, workers were not allowed to leave company-controlled hostels after working hours. Only 39 mills paid the minimum wage and in half the mills, a standard working week involved 60 hours or more of work. 'Supervisors torture girls to extract work beyond their capacity,' ICN quoted an 18-year-old former worker as saying. Another teenage girl, Kalaichelvi, who earned around 8,000 rupees ($118) a month, told researchers she was forced to work for 12 hours straight with no breaks for lunch or to use the bathroom. She said she suffered from burning eyes, rashes, fever, aching legs and stomach problems due to the working conditions. About a third of the yarn produced by workers like Kalaichelvi is used in export factories in Tamil Nadu that produce garments for many global brands. Citing poor enforcement of labour laws and 'superficial audits' by buying brands, the ICN called on the industry and government to map supply chains and publish sourcing details.
SOURCE: The Daily Mail
SSM (Schärer Schweiter Mettler AG), an innovative leader in yarn processing and winding and Swiss developer, leader, and holder of patents in electronic yarn guiding systems, presented eight new product launches for the first time at the recently held India ITME 2016 in Mumbai from December 3 to 8, 2016. The SSM X-Series generated a large interest. SSM continued their tradition of trend-setting with the presentation of breakthrough technologies. SSM displayed a total of five machines, showing eight new product launches for dye package / rewinding, assembly winding, air texturing, and sewing thread finish winding.
One of the most interesting applications was the introduction of the DIGICONE 2 winding algorithm, enabling a 10 to 20 percent increase on dye package density with same dyeing recipe which is only available on the SSM XENO-platform. On the other hand, the SSM X-series are the most economised winding solution, reduced to the max yet maintaining highest flexibility for any cost-efficient winding application.
From SSM GIUDICI came the DP5-T which was exhibited in a special single-execution showing fancy flex for the production of slubs and thick & thin fancy yarns which gained a large interest. Finally the SSM TK2-20 CT (for cones), KTE (for Kingspools)and TT (for tubes) finish winder for sewing threads (with an electronically controlled tuck-in device) concluded the range of machines shown in Mumbai.
SOURCE: Fibre2fashion
Four labourers of a textile unit in Katargam lodged a complaint against their owner for not paying them wages for the last six months. Following the complaint, police booked the unit owner Pradeep Tala, a resident of Ambikanagar, for cheating Ajay Rai and three others. The labourers told police that Tala owes them Rs 8.75 lakh in all. Tala did not pay them despite several reminders since July. Having lost their hope of getting the payment after demonetization which resulted in a severe cash crisis, they approached the police. The complainants were engaged in embroidery work at Tala's unit. Police probe revealed they were hired for job work on fabrics. After completing work as per pre-decided charges, they returned the finished material but Tala kept dithering on the payment, said said P K Diyora, PI, Katargam police station. Tala has been booked for cheating.
SOURCE: The Times of India
India is in talks with China’s leading e-commerce firm Alibaba.com to help domestic garment exporters market their products online and educate them about payment gateways, security and privacy issues. With Alibaba’s help, India’s garment exporters will be able to promote, design and customise their products online as per clients’ needs and get assured payment, officials said. The idea behind the intended partnership is to deliver end to-end solutions for exporters, especially the smaller ones who can’t keep huge inventory, they said.
The Apparel Export Promotion Council, India’s nodal agency for promoting business between exporters and buyers, has held four-five rounds of discussion with the Jack Ma founded company so far, said one of the officials, who did not wish to be identified. “But we are open to talks with other players also. We want our e-commerce partner to promote Indian SMEs (small and medium enterprises) on their portal,” the official said. Since sellers on Alibaba.com are typically manufacturers and distributors, if the deal is sealed small exporters in India will be able to market and sell their products to companies in other countries.
Promoting small exporters is high on the government agenda because 79% of India’s garment exporters have revenue of less than Rs 10 crore per annum. The council may also seek its online partner’s guidance for managing logistics in the future, officials said. Although there are more than 8,000 garment exporters registered with the council, less than 100 use online platforms to promote and sell their goods. “Exporters need to also explore the e-commerce way of doing business and not limit themselves to face-to-face interactions. We realised that they need handholding to put their products online because they have apprehensions on how to get business and payments,” the official said. According to industry experts, climatic changes and fast moving fashion trends have made buying patterns unpredictable. Hence, online presence will enable year-round buying and faster delivery for manufacturers and exporters. The entire process of design to delivery, which used to take up to three months in 2004, has now been crunched to 30-35 days and can be further reduced if online platforms are used, they said.
In 2015-16, India exported readymade garments worth $17 billion. The industry has seen fluctuations in the past six years due to global economic uncertainty and loss of competiveness to emerging economies in the region, especially China and Bangladesh. Shipments to the European Union, the top destination for India’s garment exports, fell 5.5% in 2015-16 from the previous year.
SOURCE: The Economic Times
With the sharing of administrative powers a tough nut to crack, the Goods and Services Tax (GST) Council comprising the Centre and states on Thursday sidestepped it and devoted productive time to make the principal Bill of 195 sections, defining the comprehensive indirect tax, foolproof and ready for tabling in Parliament and state assemblies. If the council manages to firm up the two other draft laws on integrated GST and states’ compensation on Friday, that will throw up the possibility that Parliament’s Budget session could take up all the three Bills, technically not ruling out GST rollout on April 1. But most analysts said that this was wishful thinking: The Integrated GST (IGST) Bill, which will determine how the GST is levied, collected and appropriated on inter-state transfers and imports, is integrally linked to the vexed issue of separation of administrative domains between the Centre and states, they pointed out. The chances of an imminent consensus on who will assess/audit who looked remote in the post-demonetisation, vitiated political climate, they said. Further, the law ministry’s opinion that the Centre alone could administer IGST could prove to be a stumbling block in meeting the states’ demand that all businesses with turnover up to R1.5 crore should be left to them exclusively. “We have almost given final shape to CGST, SGST drafts, with only three-four clauses related to territorial definition and state boundaries left for discussion. IGST and compensation laws will be discussed on Friday,” a senior official told reporters. There is a constitutional compulsion on the Centre and states to usher in GST before September 16.
The cross-empowerment issue is about how to divide the 10-million indirect tax assessee base between the Centre and states for administrative and audit purposes. An agreement had earlier been reached that there won’t be dual control on any taxpayer; that is each business will either report to the centre or the respective state. But if IGST is to be left with the Centre, then dual control might become necessary in cases of businesses with inter-state presence. The states, keen to protect the local bureaucracy, argue that they have the infrastructure deployment at the grassroots level and small taxpayers are familiar with local authorities. The central government, on the other hand, is not in favour of the demand as it wants a single-registration regime for ease to service taxpayers, believing firmly that the states have yet to acquire to competence to assess this segment of the taxpayers, 3 million at last count.
Opposing the Centre’s proposal for a vertical split of the assessee base for administrative purpose, the states are building rationale for keeping small taxpayers with themselves: Taxpayers with a turnover above Rs 1.5 crore contribute 90% of the revenue, even as 93% of the service tax assessees and 85% of the VAT taxpayers have a turnover below Rs 1.5 crore, Kerala finance minister Thomas Isaac had said.
At Friday’s meeting of the council, sources said, the Centre, armed with the law ministry’s view, might propose two formulas: Cross-empowerment where every year both the Centre and states will decide who will audit whom on the basis of risk parameters and a complete vertical division for three years, with a Centre-state ratio of 4:6; with a mirror image approach favouring the Centre for large taxpayers. At its meeting on November 4, the GST Council had agreed on a four-slab structure — 5, 12, 18 and 28% — along with an additional cess on luxury and ‘sin’ goods to raise the funds for the Centre to compensate the states. The council is yet to take a finalise the list of items under each tax bracket, although a committee of officials has prepared a draft in this regard. The council also needs to decide on the rate for precious metals, including gold, although sources say 3-4% rate is under active consideration.
As per the plan, items constituting half of the consumer price index (CPI) basket including food grain will be exempt from GST. Many other goods of mass consumption, together another tenth of the basket, will be taxed at 5%; a quarter of the CPI basket will come under either 12% or 18%, the two “standard rates.” These apart, items that currently suffer a real tax incidence of 30-31% will come under the highest rate of 28% and so will the four demerit items — tobacco and tobacco products, aerated beverages, luxury cars and pan masala — on which the taxes now are 40-60%, including cesses. Over and above the 28% levy, the four demerit goods and possibly many other items will be brought under a luxury cess in order to find resources for states’ compensation, agreed to be full for the first five years since GST rollout. With this impost and the existing clean environment cess (all other existing cesses will be subsumed in GST), the Centre expects to garner Rs 50,000 crore annually.
SOURCE: The Financial Express
The Goods and Services Tax (GST) Council, comprising the Union finance minister and state representatives, mainly their finance ministers, cleared most of the draft model GST Bill on Thursday. This leaves mainly the contentious issue of administrative turf between the Centre and states for Friday. Some state finance ministers did not rule out the Centre resorting to voting for resolving the issue of control over assessees under the proposed regime.
Beside administrative turf, the Friday meeting will take up the Integrated GST (IGST) and compensation Bills. Agreement over these would be crucial for introducing these in the coming session of Parliament. "The basic model GST Bill has been concluded. Things we have kept aside, such as the issue of cross-empowerment and IGST, will come for discussion tomorrow," Jammu and Kashmir finance minister Haseeb Drabu told reporters after the meeting. He said it was decided earlier as well to go through the entire draft model law first and clear all procedural parts; that has been done. The issue of administrative turf has been stuck for some time, despite an initial agreement between Centre and states. While the Centre is pushing for a cross-empowerment model of randomly choosing and dividing five per cent of the assessees between itself and the states, using a computer programme, states want sole control over assessees up to Rs 1.5 crore of annual turnover.
Earlier, it was expected the Bills would be introduced in the winter session of Parliament but that ended last week without the GST Council approving these. A consensus or some other resolution to the issue of administrative control over assessees is a must for the legislations to get into the Budget session. M S Mani, senior director, Deloitte Haskins & Sells, said: “It is better if a consensus is achieved on the legislative issues. The need of the hour is to have clarity on several issues, including that of rates and classification so that businesses can be prepared.”’
Kerala finance minister Thomas Isaac, who could not attend the meeting as he was unwell, told Business Standard over a phone that the contentious issues could be sorted only by voting. If the Bills are introduced in the Budget session, there is hope, though dim, of introducing GST from April 1, when the next financial year begins. Last year's constitutional change allows time till September 16 in this regard. After which, the authority lapses unless the rule is amended. Asked about the demand of some states to raise the compensation amount to Rs 1.5 lakh crore from Rs 50,000 crore a year due to demonetisation, Drabu said: “I don't think we should link the two.” To a query on whether the rates would be reworked due to demonetisation, Drabu said GST was not even in force when the latter eventy took place. The Council has already agreed on four GST slabs — 5, 12, 18 and 28 per cent — and a cess over the peak rate on aerated drinks, luxury cars and tobacco. Isaac added that demonetisation had eroded the trust between Centre and states.
SOURCE: The Business Standard
Government is formulating a National Policy for Advanced Manufacturing as one of the key tools to attain its objective of increasing the contribution of manufacturing output to 25 per cent of GDP by 2025 from 16 per cent at present. The National Policy for Advanced Manufacturing also aims to significantly enhance India's global manufacturing competitiveness. However, the government is mindful of the "threat to jobs" due to adoption of smart manufacturing. "There are a lot of concerns, lot of opportunities, there are also threats particularly on jobs so how to make our policies, how to tailor our industry, how to get ready for this in a manner that the transition is seamless and our people are skilled enough, may be to relocate to other areas," DIPP Secretary Ramesh Abhishek said. He was addressing a meeting to seek stakeholders' inputs on the policy. The meeting, chaired by Department of Heavy Industry Secretary Girish Shankar, also discussed the framework for introduction of 'Industry 4.0'. "The National Policy for Advanced Manufacturing which essentially is how to increase technological depth so that we become globally competitive and are not left behind," Shankar said. However, he pointed out that framing of the policy may take some more time because it needs a lot of consultation, and invited comments from the public.
The capital goods policy envisages formulation of a national policy for advanced manufacturing which would include advanced materials, modern manufacturing like advanced robotics and 3D printing, among others. The National Capital Goods Policy, approved by the government in May, envisages increasing production of capital goods from Rs 2,30,000 crore in 2014-15 to Rs 7,50,000 crore in 2025 and raising direct and indirect employment from the current 8.4 million to 30 million. It envisages increasing exports from the current 27 per cent to 40 per cent of production while increasing share of domestic production in India's demand from 60 to 80 per cent, thus making the country a net exporter of capital goods. The policy also aims to facilitate improvement in technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of MSMEs.
SOURCE: The Business Standard
Indian Port Rail Corporation Ltd (IPRCL) is looking at enhancing port connectivity and evacuation while paving the way for seamless integration of port-railway system with the Indian Railways network, government said. As a joint venture between major ports and Rail Vikas Nigam Ltd (RVNL), "in the coming years, IPRCL, as a dedicated SPV will continue to develop railways as a mode of transport in the port sector", the Shipping Ministry said in a statement. It said IPRCL will strengthen the second pillar of Sagarmala, the flagship programme of government which has four pillars -- port modernisation, port connectivity and evacuation, port-led industrialisation and coastal community development.
Under the Ministry of Shipping, the programme aims at promoting port-led development along India's 14,500 km long coastline. As part of Sagarmala, more than 400 projects, at an estimated infrastructure investment of more than Rs 7 lakh crore, have been identified across port modernisation & new port development; port connectivity enhancement, port-linked industrialisation and coastal community development. These projects will be implemented by relevant Central Ministries, State Governments, Ports and other agencies primarily through the private or PPP mode.
IPRCL will strengthen 'port connectivity and evacuation' through various dedicated projects. The Salegoan-Pardip dedicated freight corridor model will be replicated in future in other port connectivity projects. IPRCL held its first Annual General Meeting here yesterday. In 2015-16, 20 railway projects were taken up across eight Major Ports. Of this, 11 works with total project cost of Rs 7,636.15 crores were for preparation of Feasibility and Detailed Project Report (DPR) and nine works with total cost of Rs 643.77 crore were for project execution.
IPRCL has completed the pre-feasibility study of a heavy haul rail corridor from Ib Valley-Talcher to Paradip and Dhamra to evacuate coal mines of Mahanadi Coal Ltd (MCL) to the ports for shipping them to the southern states of India through the coastal route. "On the above mentioned corridor IPRCL is taking up the third and fourth line from Salegoan to Paradip that will be dedicated to freight. The development of this project will give a major fillip to the government's initiative to promote multi-modal logistics and coastal shipping," the statement said. The company has already started rail infrastructure modernisation in Kolkata, Vishakhapatnam, Chennai, Tuticorin and New Mangalore Ports. Rail infrastructure expansion and modernisation works are likely to commence from April 2017 in Kandla and JNPT ports and in Haldia Dock Complex (HDC). The company has also taken up the task of preparation of DPR for Rail and Road connectivity of the proposed Major Port at Colachel (Enayam) in Tamil Nadu.
SOURCE: The Business Standard
E-commerce company Snapdeal on Thursday announced the launch of a ‘Cash@Home’ service, which allows users to order Rs2,000 cash and get it delivered at their doorstep. “The launch of the cash on demand service is intended to further help our consumers tide over any cash crunch that they might face in addressing their daily needs,” Snapdeal co-founder Rohit Bansal said in a statement. Snapdeal will be using the cash that it receives through Cash on Delivery (CoD) to operate this facility. Snapdeal will charge a nominal amount of Rupee 1 as convenience fee, which will need to be paid through FreeCharge or through a debit card at the time of booking the order. “At the time of cash delivery, the consumers will need to swipe their ATM card on the PoS machines, which Snapdeal’s courier partners will carry for all such deliveries. Once transaction is successful, the courier person will hand over Rs2,000 in cash,” the statement said.
Under the service, an user can request Rs2,000 per booking, and any bank’s ATM card can be used to pay for the cash. The customers are not obligated to order anything else from Snapdeal to access the ‘Cash@Home’ facility, the statement added. The service is already live in Gurgaon and Bangalore, and will be extended to other major cities in the coming days, with the operative details to be updated as per user feedback and availability of currency notes, the statement said.
SOURCE: The Live Mint
India and the US should cooperate and settle issues related to patents, commercial disputes and visa and tax problems to promote bilateral trade. Speaking to media persons, NV Srinivasan, National President, Indo-American Chamber of Commerce, said many companies in the US are looking at India for investments due to availability of talent pool and affordable cost. Energy, logistics, defence equipment manufacturing, infrastructure and aerospace are major areas of interest among the US investors.
According to a report released by DIPP, the US is the fifth largest source of foreign direct investment in India. The cumulative FDI inflows from the US between 2000 and 2015 amounted to $19.38 billion, which is 6 per cent of the total FDI inflows into India. “Aerospace particularly is a huge area of interest and talks are ongoing about having a joint venture in the area of space technology and design,” Srinivasan said. To take projects further ahead, issues related to IPR, commercial disputes and taxation need to be addressed first, he added. While the US companies are interested in setting up facilities here, they are reluctant to transfer knowledge related to latest technologies.
Srinivasan said having an efficient dispute settlement mechanism is another important factor to foster bilateral trade relations between the two countries. Lack of such a system has resulted in many international companies distancing themselves from resolving disputes in India and this has affected many bilateral business dealings. Indians face difficulties related to dual social security payments and visa; and these should be solved given the proliferation of Indian companies and start-ups in the US. “Introduction of new legislative changes, coupled with robust intellectual property and taxation laws will go a long way in improving trust,” Srinivasan said.
SOURCE: The Hindu Business Line
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 53.47 per barrel (bbl) on 21.12.2016. This was higher than the price of US$ 53.09 per bbl on previous publishing day of 20.12.2016.
In rupee terms, the price of Indian Basket increased to Rs. 3629.00 per bbl on 21.12.2016 as compared to Rs. 3604.88 per bbl on 20.12.2016. Rupee closed stronger at Rs 67.87 per US$ on 21.12.2016 as against Rs 67.90 per US$ on 20.12.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on December 21, 2016 (Previous trading day i.e. 20.12.2016) |
Pricing Fortnight for 16.12.2016 (Nov 29, 2016 to Dec 13, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
53.47 (53.09) |
50.85 |
|
(Rs/bbl |
3629.00 (3604.88) |
3460.34 |
|
|
Exchange Rate |
(Rs/$) |
67.87 (67.90) |
68.05 |
SOURCE: PIB
The global trend heavily overshadowed sentiment at the domestic market, particularly the temporary shutdown of a large number of spinning units in China due to heavy smog, Under the influence of global trend, trading activity on the cotton market on Wednesday slowed down. The Karachi Cotton Association spot rates also remain unchanged. Spinners generally preferred to abstain owing to slow off-take of yarn and textile goods. Barring needy spinners who indulged in short covering, the market remained devoid of activity. This also impacted the New York cotton market which spearheaded the global downward trend in cotton prices. The Indian textile industry is also under crisis where spinners avoid building up their positions because retail off-take of textile goods have slowed down owing to currency crisis.
Major deals that changed hands on the ready counter were: 1,000 bales from Sanghar (done at Rs5,900), 1,000 bales Pithoro (Rs6,200), 600 bales Taunsa Sharif (Rs6,050), 800 bales Hasilpur (Rs6,100), 400 bales Vehari (Rs6,100), 800 bales Haroonabad (Rs6,365 to Rs6,400), 400 bales Fort Abbas (Rs6,400) and 1,200 bales Sadiqabad (Rs6,500). On the domestic front, due to banks’ closing on Dec 31 and a larger number of holidays during the last week of this year, spinners avoiding building up their cotton inventories, brokers said.
SOURCE: Yarns&Fibers
US President-elect Donald Trump has created a new trade body within the White House that would report directly to him and roped in an economist and a billionaire — both known for their anti-China stance — for his economic team. The formation of the White House National Trade Council further demonstrates Trump's determination to make American manufacturing "great" again and to provide every American with the opportunity to work in a decent job at a decent wage, the presidential transition team said. The council would be headed by economist and University of California-Irvin Professor Peter Navarro, who would serve as Assistant to the President and Director of Trade and Industrial Policy, the team said in a statement.
Professor Peter Navarro, Peter Navarro Professor Peter Navarro will head the Council and serve as Assistant to the President and Director of Trade and Industrial Policy (Photo: Bloomberg) "Navarro is a visionary economist and will develop trade policies that shrink our trade deficit, expand our growth, and help stop the exodus of jobs from our shores," it said, adding that he has been instrumental in challenging the prevailing Washington orthodoxy on so-called free trade.
According to the transition team, the mission of the National Trade Council will be to advise the President on innovative strategies in trade negotiations, coordinate with other agencies to assess US manufacturing capabilities and the defence industrial base, and help match unemployed American workers with new opportunities in the skilled manufacturing sector. Later in the day, Trump announced to appoint billionaire investor Carl Icahn to serve as a special advisor on issues related to regulatory reform. Icahn was one of Trump's earliest supporters, and his intimate knowledge of what businesses need to grow and thrive makes him a trusted voice in developing President-elect's 'America First' economic agenda, the media statement said. "Icahn will be a leader in helping American entrepreneurs shed job-killing regulations that stifle economic growth," it said.
In a report, The Wall Street said the announcements "offer clues about how Trump will attempt to flesh out his distinct economic agenda that fuses traditional Republican principles of lower taxes and regulation" with a more populist approach on trade, immigration and manufacturing. billionaire investor, Carl IcahnTrump appointed billionaire investor Carl Icahn to serve as special advisor on issues related to regulatory reform (Photo:Reuters) The Democratic National Committee deputy communications director Eric Walker alleged that this is a quid-pro-quo 25 years in the making. "In the early 1990s, Icahn came to Trump's rescue as his casino business was failing. Today, Trump made Icahn the regulatory czar of his administration," he said. "The corrupt nature of this arrangement cannot be understated. Voters who wanted Trump to drain the swamp just got another face full of mud," he added
SOURCE: The Business Standard
Increasing skilled manpower in design and providing necessary apparel solutions to retailers can help the textile industry of Bangladesh to achieve its export target of $50 billion by 2021, said David Hasanat, chairman and CEO of Viyellatex Group. He also said that challenges faced by the RMG sector can be tackled using new technology, training and research. Bangladesh can also go beyond its export target, added Hasanat while addressing the roundtable on ‘$50 billion export target and the role of Centre of Excellence for Bangladesh Apparel Industry (CEBAI)’. It was organised by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in association with the CEBAI and International Labour Organization (ILO). It is important to provide garment solutions and supply all types of garment and apparel made in Bangladesh, said Hasanat. He also said that less than 1 per cent manufacturers in Bangladesh offer design support to buyers. Over 20,000 expatriate experts are taking over $5 billion from the country every year due to the shortage of skilled manpower. This amount is higher than the net profit of the local garment exporters, according to Hasanat.
Occupational safety, gas and power supply, transportations, port services, market diversification and more also need to be addressed, added Hasanat. Bangladesh can expand its market by exporting garments to countries like India, China, Japan and South Korea, said Faruque Hassan, vice president, BGMEA. Hassan also said that the country should diversify its products. While trousers, shirts and t-shirts make up for 79 per cent of the total apparel exports per year, exports of suits, swimwear, sportswear and blazers have also been increasing.
SOURCE: Fibre2fashion
More than 170 delegates from five countries attended the flagship event by GOTS in Dhaka, Bangladesh on 23rd November, 2016- National Seminar on GOTS Certification - including International Brands & Retailers, manufacturers & exporters, representatives from Govt of Bangladesh, certification bodies, professionals from fields of testing, chemical compliance, media, trade associations, NGOs, academics, consultants and so on. The theme of the conference was –‘Business Case for Sustainability with Organic Textiles’. Today, out of the more than 3,800 facilities GOTS certified worldwide, more than 400 are in Bangladesh. This is the 5th highest number of GOTS certified facilities worldwide.
In his welcome address, Sumit Gupta, GOTS Representative in Bangladesh & India appreciated Bangladesh Textile Industry for their ambitious target to achieve the figure of 50 Bn USD in RMG exports and encouraged the industry to use sustainability and GOTS as a tool to help them achieve this goal. “I was delighted to see tremendous interest in GOTS and sustainability among the textile industry in Bangladesh. The fact that this seminar had a full house and delegates showed great enthusiasm during the Q&A sessions testifies that the industry is set to move towards a cleaner future”, said Rahul Bhajekar, GOTS Director Standards Development & Quality Assurance. Four sessions of the conference addressed the various dimensions of GOTS as an instrument of sustainable supply chain management.
Key results of the sessions:
SOURCE: The Tecoya Trend
Pakistan has asked Uzbekistan to explore joint ventures in textile sector amid expectation that regional trade can provide opportunities to both the economies. Commerce minister Khurram Dastgir Khan gave the invitation on Thursday while chairing a meeting with a high level Uzbek delegation headed by Ulugbek Rozukulov, Deputy of the Prime Minister of Republic of Uzbekistan.
In order to realise the vision of regional connectivity for enhanced economic integration and to follow up on initiatives taken during the Prime Minister’s recent visits to central Asian countries, the Ministry of Commerce has chalked out a comprehensive plan for trade promotion exclusively focused on Central Asia, he said. The minister welcomed the delegation and said that the visit would help promote trade and economic relations between the two countries. The trade volume between the two countries was $3.92 million in 2015-16 which increased from $2.98 million in 2014-15. Pakistan’s exports to Uzbekistan have witnessed marginal increase from $1.347 million in 2014-15 to $2.07 million in 2015-16, while imports from Uzbekistan have also slightly increased from $1.56 million to $1.843 million during the same period. The minister said the bilateral trade between Pakistan and Uzbekistan was not reflective of the true potential. Uzbekistan is a country of about 32 million people with exports $13.32 billion (2014 estimate) and imports of $12.5 billion (2014 estimate).
The major export commodities include energy products, cotton, gold, minerals, fertilisers, ferrous and nonferrous metals, textiles, foodstuffs, machinery, and automobiles while the major import commodities include machinery and equipment, foodstuffs, chemicals, ferrous and nonferrous metals. The minister said there are certain issues that hampered the expansion of bilateral trade, like lack of direct cargo links, safe and direct land routes, marketing strategies, knowledge of pakistani products, visa facilitation and costlier transportation by air. “Barriers and challenges are there, but we have to work together to remove the barriers and facilitate the trade,” the minister added.
The minister extended invitation to both public and private sectors of Uzbekistan to organise a single country exhibition in Karachi or Lahore which were the commercial hubs of Pakistan. The minister proposed exploring opportunities for joint ventures in Textile. “There is also a need to revive the forum of Joint Commission and the next session may be held soon,” the minister said. The minister informed the delegation that Memorandum of Understanding (MoU) between Trade Development Authority of Pakistan (TDAP) and the Uzbek Ministry of Economic Affair and Investment has already been signed. The MoU aimed to promote and develop trade links between the two countries. “In this regard, a Central Asia Trade Caravan/Roadshow including single country exhibition has been planned to be held in the 1st quarter of 2017,” Dastgir said.
The Uzbek Prime Minister’s deputy Rozukulov Ulugbek appreciated the efforts and steps taken by the ministry of commerce and government of Pakistan for the promotion of bilateral trade and assured of Uzbekistan’s full support. Ulugbek informed the minister that Special Economic Zones have been created in Uzbekistan with zero tariffs and Pakistani investors could benefit from the facility.
SOURCE: The News
The second edition of Apparel Textile Sourcing Canada (ATSC) will kick off from August 21, 2017. The three-day apparel, textile and fashion event is one-of-a-kind programme to meet apparel, textile, fashion and fabric manufacturers, factories, and leaders from across the world. The show will provide a platform to develop global industry connections. ATSC has also secured a 50 per cent increase in exhibit space at the event that will be held in Toronto’s International Centre. ATSC 2017 will bring to Canada hundreds of apparel and textile manufacturers from around the world, including China, India, Bangladesh, Pakistan, US, UK, Mexico, Colombia, Peru and many more. The event will include comprehensive trade show and conference. The programme will be held in association with Canadian and International partnerships such as the Canadian Apparel Federation (CAF), US based Fashion Business Inc. (FBI) and the China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT). JP Communications, a business sourcing platform is the producer of the event. “The uniqueness of Canadian market is always attractive to Chinese manufacturers, success of ATSC’s first edition has given us confidence to bring more high quality producers in 2017,” said Jiang Hui, chairman of CCCT. “ATSC 2016 had impressive traffic, the seminars were all informative and well attended, and connections with great people were made. We look forward to returning again in 2017,” said Trish Concannon, executive director, FBI. ATSC debuted in 2016 with more than 200 booths of merchandise, and over 1,800 attendees.
SOURCE: Fibre2fashion
Vietnam International Fashion Fair 2016, a six day event co organized by Co-organised by Vietnam Exhibition and Fair Centre JSC (VEFAC) and Vietnam Textile and Garment Group, opened its doors on 21st December where more than 150 enterprises are showcasing their products. The event is hosting over 200 booths covering 4,000sq.m. On display are textiles and garments, footwear, cosmetics, jewellery and beauty services. Vu Ngoan Hop, member of the VEFAC’s board of directors, said that the event is not only a trade promotion activity for the local fashion industry and exporters of textiles, footwear, jewellery and fine art products, but is also a good shopping festival for people in the capital city. He described the event as a promising opportunity for participating enterprises to effectively advertise their products to customers. Last year’s event witnessed the participation of more than 250 local firms, showcasing their goods across 4,000 pavilions. Vietnam International Fashion Fair 2016, will run for 21 – 26 December at Ha Noi’s International Centre of Exhibition.
SOURCE: Yarns&Fibers
Thyssenkrupp Industrial Solutions, a leading partner for the engineering, construction and service of all industrial plants and systems has struck a deal with the Russian joint-stock company POLYESTER PLANT IVANOVO to build a new PET polymer and staple fibre production plant roughly 250 km northeast of Moscow in the Ivanovo region. The new PET production plant will be the centre piece of a production complex for synthetic fibres. The construction of new facility is aimed at overcoming the dependence of the region's textile enterprises on imported commodities. The new facility with ‘best-in-class technology’ will have an annual production capacity of up to 200 000 tons of polyester polymer. It involves investment to the tune of EUR 150 million. The contract awarded to Thyssenkrupp includes engineering, procurement and the supervision of erection and commissioning. Thyssenkrupp have a proven track record of providing their customers in Russia with leading polycondensation technologies and equipment, said Sami Pelkonen, CEO of the Electrolysis & Polymers Technologies business unit of thyssenkrupp.
SOURCE: Yarns&Fibers
The need for greater transparency in apparel supply chains was the subject of a meeting which brought together representatives from apparel manufacturers, brands and retailers, as well as government, NGOs and textile industry workers. "Transparency is a core pillar of C&A Foundation's work. We believe it can bring about accountability and transform the fashion industry into a force for good," said Leslie Johnston, executive director of the C&A Foundation, which co-hosted the Sri Lanka-based event alongside Humanity United, Open Society Foundations and Transparentem.
Cotton2Cloth: Transparency in the Apparel Industry brought together 57 participants from 12 countries, with participants looking at how to use transparency to improve working conditions in the apparel industry. The meeting – perhaps ironically – was held under Chatham House Rule, however, there were some interesting observations about how a lack of transparency in supply chains is not conducive to sustainability. "The brand compliance department comes with a long to-do list. The sourcing department comes with a price target and the two don't agree," said one manufacturer. A brand representative added: "Transparency is not a goal, but a process that helps us improve; a tool that shares what works and what doesn't." Another participant said: "Honestly, name and shame is useful. You need your board to be scared. You need some negative stories to drive change." These are sentiments with which this magazine would concur, adding that money is what ultimately talks at the board level – and reputational damage can hit the bottom line hard.
A representative at the meeting also asked NGOs why the same brands are repeatedly targeted while a much longer list of "laggards" are not held accountable. NGO participants responded that brands themselves can play a role in levelling the playing field and championing effective legislative reform, as was done in the UK when leading reputation sensitive brands lobbied in support of the UK Modern Slavery Act.
SOURCE: The Ecotextile
China exports about $169 billion worth of clothing annually. It used to be the unrivaled textile king of Asia. But with wages in China having doubled in the last five years and apparel makers there under heavy pressure from clients to cut costs, companies are increasingly moving production of low value-added goods out of the country. Chinese apparel makers are prompted to shift their production to neighboring Vietnam, where labor costs are nearly 60% lower. Although such moves does involve a certain amount of risk due to the nations' territorial dispute in the South China, among other factors. Nameson Holdings, maker of sweaters and other knitwear to order based in Huizhou, Guangdong Province plans to increase production in Vietnam. The company began turning out products in the Southeast Asian country in 2015 at a factory in the suburbs of Ho Chi Minh City. It expects to complete the second phase of construction at the plant in April next year.
Nameson mainly supplies garments to Japan's Fast Retailing, operator of the Uniqlo chain of casual clothing stores. Over half of the Chinese company's revenue comes from sales to the Japanese retailer. Nameson's production shift is partly due to a 2009 economic partnership deal that has in principle eliminated tariffs on Vietnamese textile exports to Japan. Nameson is trying to expand its customer base in Japan.
China's Bosideng International Holdings, a major manufacturer and retailer of down jackets, is also boosting output in Vietnam. It currently produces garments on a trial basis at a Vietnamese textile factory affiliated with Japanese trading company Itochu, with which it has a capital partnership. Bosideng will closely monitor the situation at its Vietnam plant and base its expansion moves on developments there. Bosideng Chief Financial Officer Mak Yun Kuen said that theirr clients are increasingly looking for a cross-border supply network, and that's partly why Bosideng is missing out on potential orders in original equipment manufacturing(OEM). The shift to Vietnam is intended to cut production costs. But with the U.S. President-elect Donald Trump announcing his intention to pull the U.S. out of the Trans-Pacific Partnership, a free trade accord encompassing 12 countries, including Vietnam and Japan. The shift of textile production by Chinese businesses to Vietnam wanting to take advantage of lower tariff may slow down. Also setting up operations on foreign shores carries risks. In the spring of 2014, Vietnamese protesters gathered for a huge demonstration against China's oil exploration in the South China Sea. Chinese and Taiwanese companies were targeted by violent protesters, leading to supply chain disruptions.
SOURCE: Yarns&Fibers
The Ham-Meem Group lodged the case on Wednesday, said Ashulia police's Inspector (investigation) AKM Shamim Hasan. Meanwhile, 12 including two workers’ leaders were nabbed on Thursday. 19 have been detained so far over the unrest. Inspector Shamim, however, did not specify the charges levelled against the workers by the Ha-Meem group. The agitation for higher minimum wage have forced the indefinite closure of more than 50 apparel factories in Ashulia. On Thursday, thousands of law enforcers were seen patrolling the zone and guarding the entrances of the closed factories. Windy Apparels Ltd and Fountain Garments Manufacturing Ltd previously filed two cases against 249 workers for 'provocation and creating disruptions' and suspended 121. Police detained 'Masud' and 'Baker' from Jamgorha area and five more in the cases.
Seven of the detained have been identified:
Garment Workers Trade Union's General Secretary Khairul Mamun Mintu said six members of his unit were held from Jamgorha during the wee hours of Thursday. But he could not identify them. He said the arrests have spread panic among workers and many have already fled to their villages. Workers of 25 factories started the agitation on Monday demanding a pay hike and additional perks. The movement continued despite assurances from commerce minister, shipping minister and state minister for labour. Fifty-five factories were closed down. The labour leaders have claimed that the workers were united in their stance although the leaders did not support them. State Minister for Labour and Employment Mujibul Haque has said a vested quarter was creating the disorder with an intention to bring down the apparel sector.
Terming the movement 'absurd,' he warned the workers of legal consequences if they did not return to duties. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Siddiqur Rahman announced closure of 55 factories on Tuesday and said that the workers would not be paid for the days they have wasted agitating. The order came into effect from the next day. Many workers returned back but found closure notice hanging at the entrance of the factories. Fifteen platoons of BGB were deployed in the area along with police, industrial police and armed police . Patrols could be seen on the Dhaka-Tangail Highway from Baipail to Jirab. Director of Industrial Police-1 Mostafizur Rahman said thousands of law enforcers were deployed at the entrances of the factories and throughout the industrial area to avert any untoward situation.
SOURCE: The BD News 24
Brazil is set to exit its recession next year with weak growth and is laying the groundwork for a return to long-term stability, Finance Minister Henrique Meirelles said Wednesday. Meirelles was cautious about predicting exactly when growth would return, following two years of shrinking GDP. "There are possibilities but also uncertainties that GDP will be positive in the first quarter of 2017. But we are not counting on it," he told a press conference. Over the year, Brazil can expect one percent growth, according to the government. Market estimates, however, point to an even more meager 0.58 percent rise. But Meirelles insisted that austerity reforms -- centered on a recently approved 20 year government spending cap -- meant Brazil "is doing its homework." "We are establishing the basis for fiscally responsible administration in Brazil for at least the next 10 years," he said.
President Michel Temer is also asking Congress to pass pension reform but the measure is unpopular and only 10 percent of Brazilians think his government is doing a good job, a Datafolha poll found this month. The economy shrank 3.8 percent in 2015 and is expected to fall 3.5 percent in 2016.
SOURCE: The Yahoo News
The U.S. economy expanded more than previously reported last quarter on bigger contributions from a range of factors including services spending, intellectual property and construction by state and local governments. Gross domestic product rose at a 3.5 percent annualized rate in the three months ended in September, compared with a prior estimate of 3.2 percent, Commerce Department figures showed Thursday. The median forecast in a Bloomberg survey called for a 3.3 percent gain. The revised growth estimate, still the fastest in two years, reflected updated figures on research and development expenses from companies, spending by nonprofit institutions and use of financial services. The economy is unlikely to sustain such a pace in the final three months of the year, instead probably growing at a 2.2 percent rate, according to the median projection of analysts surveyed by Bloomberg earlier this month.
Economists’ projections for the updated advance in third-quarter GDP, the value of all goods and services produced in the U.S., ranged from 2.8 percent to 3.5 percent. This is the last of three estimates for the quarter before annual revisions in July. Household purchases, which account for almost 70 percent of the economy, grew at a 3 percent annualized rate, stronger than the 2.8 percent pace previously estimated. That change reflected primarily higher spending on services by incorporating newly available data from the Census Bureau, according to the report.
Estimates of the contributions to growth by trade and inventories were little changed. Stripping out those items, the two most volatile components of GDP, so-called final sales to domestic purchasers increased at a 2.1 percent rate, compared with the prior estimate of a 1.7 percent pace. Corporate spending on equipment decreased at a 4.5 percent annualized pace in the third quarter, compared with the 4.8 percent drag previously estimated, and subtracted 0.3 percentage point from growth, the report showed. Those outlays had declined 2.9 percent in the prior three months. The government’s report on fourth-quarter GDP is due Jan. 27.
SOURCE: The Bloomberg
