ITMF survey shows cautious optimism in textile industry

A recent survey by the International Textile Manufacturers Federation (ITMF) reveals a mixed bag for the textile industry. While the overall situation remains challenging, there are signs of cautious optimism.

The business environment showed a slight improvement from November 2023 to January 2024, but remained difficult in March 2024. Weak demand continues to be the major concern, overshadowing positive developments like a small increase in order intake and capacity utilization.

Order intake saw the most significant growth in South-East and South Asia, with fiber producers and weavers/knitters experiencing the most improvement. This suggests some regional resilience.

Despite the challenges, the industry is showing signs of adaptation. The global average order backlog dipped slightly, and capacity utilization rates rose to 70 per cent in March. Additionally, a relatively low rate of order cancellations indicates a degree of stability.

Inventory levels are considered average overall. However, brands and retailers in the US still hold high levels, while wholesalers have successfully reduced theirs closer to pre-pandemic levels.

While the textile industry faces ongoing difficulties, there are reasons for cautious optimism. The slight improvements and signs of adaptation suggest a potential for future growth, especially if demand picks up. Businesses are likely to remain cautious as they navigate the uncertain economic climate.