'King cotton'
Cotton mills spread through Lancashire in the first years of the nineteenth century. (A second, smaller cotton district grew up in Scotland.) At first, as many of the mills had water-wheels as steam engines. But by 1840 nearly all were driven by steam.
Soon after 1800, Britain was making as much cotton cloth as wool. By 1830, cotton was miles ahead. Cotton was popular because it was fine, light in weight, and easy to wash. Above all, it was cheap - the new machines, and low wages in the mills, meant that the prices steadily fell.
Until 1820, cotton exports went mainly to Europe and the U.S.A. After that, though, much more went to India and the Far East. By 1850, cotton cloth was Britain's biggest export, and India was her biggest market. Cotton was 'king' in Lancashire. The port of Liverpool thrived, importing raw cotton from the U.S.A., and exporting finished cloth.
Until the 1830s, most of the weaving was done by handloom weavers, working at home or in their workshops. They were well paid - in 1805 they got 23 shillings (£1.15) a week. Then, after 1830, power looms and weaving mills began to take over. Handloom weavers' wages crashed to six shillings (30p) a week.
The woollen industry also changed to machines and mills. But here the changes came later. Until 1830, most of the spinning and weaving was still done by hand. By 1850, though, spinning was done mainly in the west Yorkshire mills. Weaving took another 20 years to follow suit.
Walter Robson: Britain 1750 – 1900; Oxford University Press, 1993/2002, page 20