Footwear Industry In Hongkong Is Facing A Downturn In The US Economy

For Hongkong sports shoes manufacturer Fengtai Footwear Co., Ltd., August is usually the peak season because factories are beginning to produce winter sports shoes.

But this year, US retail giants such as WAL-MART (Walmart) and Sears postponed orders to the end of September on the basis of unpredictable demand, forcing Fengtai to temporarily suspend the two production lines at the Dongguan plant.

Although export dependent Asia is resilient to the slowdown in the US economy, it shows signs of worrying.

Shipments in Japan and Hongkong shrank in June, suggesting that the expected slowdown in Asian exports has finally come to light.

Eddie Lam, executive director of Fengtai footwear, said: "American retailers are worried about too much inventory and slowing down will hurt sales and they have to sell at a discount.

They are all waiting.

"Asian emerging markets have largely escaped the global credit crisis, but slowing exports will drag the region's economic growth.

Mr Morgan said that this has made it impossible to tighten monetary policy to counter inflation.

Morgan said in a research report that Malaysia jumped to an 27 year high of 7 in June.

7%, the interest rate remained unchanged.

As the happy times are gone, HSBC expects further downward pressure on Asian financial markets, which means analysts do not fully estimate the impact of weakening trade prospects.

Garry Evans, chief equity strategist of HSBC Asia Pacific, said, "the forecast of profit growth is too optimistic.

"He said analysts expect Asian companies to grow by 6% and 15% in the next two years.

Japan's exports fell 1 in June compared with the same period last year.

7%, for the first time in the past five years, there has been negative growth.

As Asia's entrepot trade center, Hongkong's exports declined by 0.

6%, far less than the market forecast growth of 9%.

Sebastien Asia, a senior analyst at Eastern Asia, said: "Asia has gradually lost its very favourable environment in the past four years." Barbe

The region is importing "the economy is slowing down", and I expect Asia to slow down significantly.

"China's exports increased by 18% over the same period last year, and began to cool compared with the growth rate of more than 20% in the past few months." in June

The profit outlook is bleak. Corporate profits also imply that further decline in exports will eventually inhibit economic growth.

Analysts said Asia's growth rate beyond Japan this year is expected to exceed 7%, driven by relatively strong domestic demand.

Last year, the economic growth rate was 9.

1%.

But the Lehman brothers are not so optimistic. They expect the economic growth rate to be 7% and face downside risks.

"If US consumption continues to slump, emerging economies exporting to the United States will slow down.

It's only a matter of time, "said Lehman analyst Young Sun Kwong.

As profits shrink, employment prospects will also be eclipsed.

Most of the medium-sized enterprises surveyed by HSBC said they did not plan to increase their employees in the next six months.

Worse still, exports that have helped offset the slowdown in exports to the US and Europe will also deteriorate.

Fung Tai shoes is the British baby products retailer Mothercare (MTC).

Sales of L: quotas are still normal today, but as many analysts say that Britain is entering a recession, the CEO is no doubt restless like ants on the hot pot.

"Sales to Mothercare increased by 5%, but they also delayed orders.

"