The 17th International Textile Manufacturers Federation (ITMF) Global Textile Industry Survey showed that, on average, the business situation in the global textile industry deteriorated further in November.
At the same time, global business expectations for the next six months remained in negative territory, but did not worsen, ITMF said. The indicators for order intake, order backlog and capacity utilization rate all dropped around the world.
According to the survey, the business situation in the three Asian regions and Europe remained especially poor. On the other hand, in North and Central America the business situation continued to improve markedly.
“Except for the textile machinery segment that still benefits on average from a long order backlog, all other segments found themselves in negative business situations, especially fiber producers and spinners,” ITMF said.
Global business expectations remained negative but “stabilized” at about 10 percent below their July level. Expectations have improved significantly in South Asia and Europe. Business expectations in all segments remained in negative territory, but four out of seven recorded improvements.
Order intake nosedived in November, in line with a weaker business situation and softer demand, currently the biggest concern for the global textile value chain. Only companies in North and Central America registered a “good” order intake, while all other regions were faced with an “unsatisfactory” order situation.
Except for Southeast Asia and North and Central America, order backlogs fell. The only segments where the order backlog increased were the downstream segments for garments and home textiles.
Capacity utilization rate dropped in all regions in November, only increasing in the textile machinery segment but fell otherwise.
As noted, “weakening demand” was by far the biggest concern in the global textile industry, followed by the root causes of demand reduction, namely high energy and raw material prices that lead to high inflation rates.
“The good news is that logistical costs are not much of a concern anymore,” ITMF added. “Concerns about geopolitics, on the other hand, have increased again in the past two months.”