According to the Chinese National Bureau of Statistics, yarn output in May climbed to 1.8955 million tons, a record high, up 15.9% from this month last year, the fastest growth since August. Over the first ten months of the marketing year, cumulative yarn output exceeds 17.1 million tons, up 11.4% from the corresponding period in 2006/07. After decelerating over the last two years, growth in yarn output sped up again early in 2008, successively faster in three of the last four months.

This re-acceleration in yarn production suggests the growth rate in Chinese fabric output may be poised to rebound. After slowing over the last two years in step with the slowdown in yarn, the resurgent growth in yarn bodes well for Chinese fabric output in 2008.