The Swiss-based International Textile Manufacturers Federation said in its latest trade report that global fabric production fell 1.3 per cent in the first quarter over the last quarter of 1997 mainly on a 6.9 per cent slump in Asia. An increase of 3.9 per cent in the US output partially offset reductions in Europe and Asia.

World yarn production in the first quarter was also down, by 0.7 per cent, over the last quarter of 1997, the survey said. Yarn output was up 3.9 per cent in North America but down in Asia and Europe, 5.4 per cent and 0.8 per cent respectively.

For the fourth consecutive quarter, global yarn stocks rose, by 6.3 per cent, largely on an increase of 9.6 per cent in Asia. Inventories in Europe were up slightly by 1.3 per cent.

But global fabric stocks slumped by 23 per cent in the first quarterof the year over the closing quarter of last year, mainly on a sharp drop in Pakistan because of strong demand from its Asian export market, especially in Hong Kong.

Elsewhere, yarn inventories rose 8.8 per cent in Japan, 3.1 per cent in the United States and 2.3 per cent in South Korea while they were up just one per cent in Europe.

At the end of the first quarter of 1998, world yarn stocks were 15.6 per cent above year-ago levels, said the survey. Outstanding fabric orders slumped by 8.2 per cent in the United States and 1.4 per cent in Europe.