Business situation of textile industry worst in Asia in Sept 2022

A positive sign for the future is that global expectations have stopped falling in September 2022, albeit staying in negative territory and therefore indicating difficult times ahead, according to the 16th International Textile Manufacturers Federation (ITMF) Global Textile Industry Survey (GTIS, formerly known as ITMF Corona-Survey). Expectations have improved in South Asia, North and Central America, and Africa. Spinners have also better prospects for March 2023, globally, indicating potential relief.

Order intake fell further, in line with the weaker business situation. Companies in North and Central and especially in South America saw order intake increase while the Asian regions continued struggling with an unsatisfactory order situation. Order backlog fell on average across all regions. South America is an exception; both order intake and backlog increased.

Only dyers/finishers and knitters/weavers experienced a small increase in order backlog. In all other segments order backlog fell. While capacity utilisation rate dropped globally in September 2022, it increased in South America’s, ITMF said. Fibre producers registered a steady decrease in capacity utilisation rate and home textile producers seem to have reversed their downward trend.

Weakening demand, high raw material prices, high energy prices, and inflation are the four major concerns of the global textile industry for the next six months. The concern about transportation costs have fallen significantly. Concerns about geopolitics on the other hand have increased significantly in the past two months.

Fibre2Fashion News Desk (NB)