When I used to work at Walmart, one of my coworkers would knit clothing for people. Though mainly she stuck to baby clothes and eve knitted some clothes for a few of my coworkers who were expecting. She was the only person I knew who knitted clothes.
For basic clothes, it can take a while, and what I've found is the fit can be awkward unless you have the baby there in person to measure. Getting a nice knitted piece of clothing as a baby shower gift is something that's memorable and a keeper too! It probably fits at some point even!