Global textile outlook dips in March 2025 as yarn inventories rise: ITMF

The global textile industry saw a slight downturn in March 2025, according to the International Textile Manufacturers Federation’s (ITMF) latest Global Textile Industry Survey. After a modest recovery since late 2023, the business climate softened, especially in East Asia and Europe. However, garment producers remained the most resilient across the value chain.

Order intake momentum weakened, with East Asia and Europe reporting declines, while South-East Asia held steady. Yarn producers saw a notable rise in inventory levels, in contrast to garment makers who continued to keep stocks low amid demand uncertainties. Global order backlogs dipped slightly to an average of 2.2 months, with European producers leading due to their strong manufacturing base.

Capacity utilization remained stable at 73 per cent, supported by higher activity in Asia. The report also highlighted persistent concerns, with 62 per cent of respondents citing weak demand as the biggest challenge, followed by geopolitical tensions at 41 per cent. While pressures from energy and raw material costs have eased, worries about interest rates and tightening sustainability regulations are rising.

Despite current headwinds, industry expectations for Q4 2025 remain positive, especially among producers of garments, fibers, and finished fabrics. Optimism is strongest in Africa and the Americas, while East Asia remains cautious.