The 26th survey of the International Textile Federation: the business situation continues to be depressed, and the year-end expectation is difficult to be optimistic

According to the latest Global Textile Industry Survey (GTIS) report released by the International Textile Federation (ITMF), the textile industry is currently facing a relatively stable business environment without significant growth drivers. The economic situation is showing slight signs of improvement as more companies report being "satisfied" with their business performance. This improvement reflects more optimism than a significant change in actual conditions.

Weak demand has been a major concern for the textile industry since September 2022, but it has eased somewhat in the last six months. In addition, the industry faces a host of other challenges, including high material prices, geopolitical tensions, high energy prices, and a lack of workers and talent.

Globally, 58% of respondents said they had not experienced an order cancellation by May 2024, down slightly from 59% in March. Among them, Africa and Europe have relatively low order cancellations, while the Americas are relatively high. The rate of order cancellation is particularly high in spinning and finishing plants and printing and dyeing plants.

In May 2024, 59% of companies reported average inventory levels. Among them, North America has the highest inventory levels, and in various market segments, spinning mills have the highest inventory levels. Inventories at brands and retailers are still high, but they are slowly diminishing. Prolonged negative business cycles often force companies to face losses or low capacity utilization, which is not expected to change significantly in 2024.