The global textile industry is in a severe crisis due to adverse conditions, but is now looking to the near future with more optimism. This is the result of a recent study, the results of which were published by the Zurich-based industry association International Textile Manufacturers Federation (ITMF) on Tuesday.
In January, according to the 18th ITMF Global Textile Industry Survey, the situation in the industry was worse than at any time since the series of studies began in November 2021. The association cited high inflation and rising interest rates as the main reasons for the problems, but also the high inventories at producers and retailers. After the end of the Corona crisis, clothing suppliers increased their order numbers, but were then surprised by the macroeconomic effects of the Russian attack on Ukraine and the resulting drop in demand for consumer goods, explained the ITMF.
However, the industry’s hopes for the coming months have increased significantly compared to the previous study from last November: According to the current study, the majority of companies now expect positive business development. The association attributed the increased confidence to the now “much better energy situation” with falling prices in Europe and Asia and to the end of the “Zero Covid” policy in China.