The situation of the global textile industry is currently not exactly rosy in view of numerous macroeconomic and geopolitical adversities. In addition, the affected companies expect further deterioration. This is the result of a recent study, the results of which were published by the Switzerland-based International Textile Manufacturers Federation (ITMF) on Friday.
According to the 16th ITMF Global Textile Industry Survey, the indices for the current business situation and future expectations have slipped into negative territory since the summer, the industry organization announced. Most recently, important indicators such as new orders and the utilization of production facilities have continued to decline. The economic situation of spinning mills in Asia has “sunk to an unprecedented level”.
Overall, producers in Asia suffered comparatively badly from the crisis, while there were rays of hope in other regions. “Companies in North and Central America, but particularly in South America, have seen an increase in new orders,” the ITMF said. The industry in South America is also currently doing better than the global competition in terms of order backlog and capacity utilization.
Although the downward trend in expectations has slowed somewhat recently, the overall global situation for textile producers is unlikely to improve in the foreseeable future: “Weaker demand, high raw material and energy prices and inflation are the four main concerns for the global textile industry for the next six months ‘ the ITMF explained. “Concerns about transport costs” have recently “reduced significantly,” while concerns about geopolitical developments have “increased significantly over the past two months,” the industry organization said.
