In previous months, denim sector of Mexico has contributed to rise in utilization of cotton. INEGE Index of Production for cotton yarn and fabric increased from 86.6 in June 2006 to 92.6 in July, showing 8.5 percent progress as against last year. This was the maximum output since December 2005.
In comparison with the 92.6 index, production index reached 94.5 for handmade fibre yarn and fabric. These indexes were at their lowest levels in June-July this year.
Denim sector saw a huge production fall of 50 percent from 2004 in the last three months of 2005, which increased in first three months of this year. Since then production has recovered with a rise of 11.9 percent in May 2006, 15.7 percent in June and 4 percent in July as against last year.
Denim transactions have seen upturn in average rates of fabric. An average price rise of 4.9 and 5.1 percent was achieved in June and July this year.
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