Exports crash in July

Export earnings in July crashed to the lowest in nine months, hurt by a slowdown in garment shipments, after registering a record high in the previous month.

Overseas shipments raked in $2.53 billion last month, down 3.8 percent year-on-year, according to data from the Export Promotion Bureau. July's receipts also missed the monthly target by 25.18 percent.

“Garment exports witnessed a slowdown due to long-term holidays for Ramadan and Eid,” said Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association.

Garment shipments brought home $2.11 billion in July, down 4.41 percent year-on-year.

The receipt from apparel exports was also 23.6 percent below the monthly target of $2.77 billion.

Rahman said exports tend to be slow during the months of July, August and September, picking from October onwards.

“The future trend of garment export is very high if all the other things go as normal,” he added.

The export of leather and leather goods decreased 2.26 percent year-on-year to $92.5 million and footwear 7.87 percent to $13.69 million in July.

Jute and jute good exports are seeing a revival on the back of new demand for natural fibres worldwide and for a return of business-friendly environment in some Middle Eastern countries, industry insiders said.

In July, jute and jute goods fetched $69.77 million, up 25.71 percent from a year earlier. Exports of terry towels decreased 36.84 percent to $2.16 million.

Encouraged by the record earnings last fiscal year, the government set the export target for fiscal 2016-17 at $37 billion, up 8 percent from fiscal 2015-16's receipts.