World fibre consumptin grew by 1.3 in 1992, well velow rates in the late 1980s. Man-made fibres gained share as synthetic fibre output grew and wool production fell. With capacity increases in Asia, further growth in man-made fibres seems assured despite continued decline in cellulosic. 1992 was a mixed year for textile machinery, with falls in spinning equipment deliveries offset by a rising market for shuttleless looms. Meanwhile, data on labour costs show Japan with the highest for the first time with Japanese wages more than double those of the USA. The high yen has hit the Japanese textile industry hard. The US textile industry recovery picked up during 1993, especially in spinning. US recovry helped smaller Asian suppliers such as Thailand, India and Pakistan although China also made big gains. In Western Europe, the recession has slowed import growth; only India and Indonesia made gains in the EC textile market in 1992. Greater trade with Eastern Europe has brought Poland into the list of top ten EC clothing suppliers for the first time. China's output and exports continue to grow. Meanwhile, th industry in Hong Kong continues to decline as the colony develops as an entrepot between China and the West. South Korea is also suffering with exports down in key markets, and Taiwan faces similar problems. Even South East Asian countries are facing tougher competition, mainly from the Indian sub-continent where ambitious export targets are being surpassed. An exception is Indonesia where success could leat to retaliation in some markets.