ITMF Global Textile Industry Survey (GTIS, formerly known as the ITMF Corona Survey) shows a deteriorating business situation and expectations in the global textile industry in September 2022. The indicators for order intake, order backlog, and capacity utilization rate also fell, globally.
According to the survey, the business situation was relatively worst in Asia, although improving. While all segments found themselves in negative situations, spinners’ situation have plunged to an unprecedented level. A positive sign for the future is that global expectations stopped falling in September 2022, albeit staying in negative territory and therefore indicating difficult times ahead. 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 America, 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 utilization rate dropped globally in Septembers 2022, it increased in South America. Fiber producers registered a steady decrease in capacity utilization rate and home textile producers seem to have reversed their downward trend.
Global business expectations September 2022 (Source: ITMF)
Weakening demand, high raw material prices, high energy prices, and inflation are the 4 major concerns of the global textile industry for the next 6 months. The concern about transportation costs have fallen significantly. Concerns about geopolitics on the other hand have increased significantly in the past 2 months.