Association of Textile, Clothing and Leather Industry (ATOK) has reported that textile industry has reported a year-on-year growth of three percent in the total sales in the first half of this year to earn Kc29.5 billion.
Textile producers together recorded a sales rise of six percent while that for garment sector saw a drop of 10 percent.
Survey conducted among 650 enterprises with more than 20 staff shows that in June the employment rate dropped 9.5 percent as compared to the same period last year. These companies in all recruited over 57000 people in the month. However, labour productivity increased nearly 15 percent.
One third of the participant companies trade in garment and clothing. It was seen that cheap imports from Asian countries were adversely affecting the domestic manufacturing industry.
ATOK has also noted that the expected 14 percent hike in price of electricity will further pull down the industry. Due to this anticipated loss for the sector will total uptro Kc450 million from the sector.
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