Apparel executives concerned about growing margin pressure got mixed news last week on the cost front. On the one hand, textile mills lead a long list of industries paying increased prices in January, according to the latest Manufacturing ISM Report On Business.
The ISM Price Index registered 81.5% in January, the highest reading since July 2008. On the other hand, the Wall Street Journal reported that the IntercontinentalExchange, Inc. was clamping down on speculators who many suspect have driven up the price of cotton to its highest levels since the Civil War.
The newspaper reported that the exchange will require those seeking to hold more than 30,000 bales of cotton at a time to seek prior approval. The measure is meant to provide relief to textile mills, which had delayed their cotton purchases in hopes prices would decline.
