ITMF: Global textile operation and expectations are turning negative
International Business News – According to the 15th survey report conducted by the International Textile Federation (ITMF), the global textile industry turned negative in July this year, with the Asian textile industry running worse than other regions, and the only thing that remained positive was textile machinery. At the same time, textile industry expectations also turned negative for the first time since May 2021, with a slightly more optimistic situation in Southeast Asia and South America, as well as in the downstream sector.
According to the report, the textile order situation is weakening globally, but the results are still in the positive. Except for spinning machine manufacturers, expectations in other textile segments have also turned negative. Therefore, the textile industry will face difficult times ahead. The survey shows that new orders are deteriorating in all Asian regions and the situation in North America, South America and Africa is relatively stable.
The number of outstanding orders has decreased slightly in the past few months, from a high of 3.1 months in March 2022 to 2.9 months in July, and this downward trend is expected to continue until March 2023. Overall, global textile starts have been stagnant since early 2022, with Africa, North America and Central America on the rise and South Asia experiencing a very severe decline in starts, hence fiber, home textile production and spinning mills.
While raw material and energy prices remain high and logistics issues still plague supply, the situation is now somewhat less severe compared to the May 2022 survey, but the expected decline in demand due to high inflation is a concern.