America's textile industry is in serious trouble according to analysts, who say it it one of the most troubled industries in the US.

Price erosion, suspended deflation and economic recession are all taking their toll on the industry.

Cheaper foreign imports and a 15-year low in cotton prices are also adding to the problems.

Many textile companies are feeling the pinch. Industry heavyweight West Point Stevens Inc, Galey & Lord Inc, Burlington Industries Inc and Cone Mills Corp have all reported heavy losses.

And industry experts are predicting the situation will only get worse as the economy slips into recession.

One company, Cone Mills, has already blamed the slowing economy as one of the reasons for its second-quarter losses.

The company has seen a 12 per cent drop in denim sales, a 35 per cent decline in khaki sales and a 21 per cent drop in decorative fabric sales.

Analysts said the depressed situation would make many textile companies a good buy at the moment.

One analyst said textiles is one of five industries at such a depressed price that statistically it has a "three out of four" chance of outperforming in the high-yield index.


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