Garment exports to the US, the country's single largest export destination, declined 19.24 percent to $1.18 billion in January and February, according to the Office of Textiles and Apparel (OTEXA), a body under the American Commerce Department.

The collective shipments of textile and garment slipped 18.88 percent to $1.21 billion in the first two months of 2024.

Local exporters say US clothing retailers and brands imported fewer apparel items from all over the world in the last two years due to unsold inventories as stocks piled up amid lower consumption during the peak of the coronavirus pandemic. 

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Garment exports to US double in five years

However, sales began to pick up in November, with forecasts of a strong economic recovery following probable further interest rate cuts by the Federal Reserve and a lower inflation trend.
Among all garment-exporting nations, Bangladesh holds the third position in the US, trailing China and Vietnam. However, the country is the top denim exporter to the US.

Bangladesh is an attractive sourcing destination for US clothing retailers and brands due to competitive pricing and a higher capability for executing orders, which has boosted their confidence, according to exporters.

The National Retail Federation (NRF), the largest trade body for retailers in the US, stated in a forecast on March 20 that retail sales will increase between 2.5 percent and 3.5 percent in 2024, reaching between $5.23 trillion and $5.28 trillion. This is due to the continued resilience of consumers powering the American economy.

In a press release, NRF President and CEO Matthew Shay said, "The resilience of consumers continues to power the American economy, and we are confident there will be moderate but steady growth through the end of the year."

"Successful retailers offer consumers products and services when, where, and how they want to shop, at prices they are willing to pay."

The 2024 sales forecast compares with a 3.6 percent annual sales growth of $5.1 trillion in 2023. The 2024 forecast aligns with the 10-year pre-pandemic average annual sales growth of 3.6 percent.

Non-store and online sales, which are included in the total figure, are expected to grow between 7 percent and 9 percent year-over-year, reaching a range of $1.47 trillion to $1.50 trillion. This compares with non-store and online sales of $1.38 trillion in 2023.

NRF projects full-year GDP growth of around 2.3 percent, a slower pace than the 2.5 percent in 2023, but strong enough to sustain job growth. 

Inflation is also expected to moderate to 2.2 percent on a year-over-year basis, due to a cooling economy, the labour and product market coming into better balance, and retreating housing costs.

"The economy is primarily supported by consumers who have shown much greater resilience than expected, and it's hard to be bearish on the consumer," said NRF Chief Economist Jack Kleinhenz in the press release.

"The question for 2024 ultimately is, will consumer spending maintain its resilience?"

Kleinhenz also noted rising home and stock prices in 2023 likely stimulated greater consumer spending via the so-called wealth effect, and this should continue in 2024. 

"Several surveys reveal that consumers appear to have a favourable outlook, which should also support their willingness to spend. However, many consumers are feeling a pinch from tighter credit and inflation."