The textile industry is experiencing the best business circumstances since September 2022, according to the ITMF Global Textile Industry Survey (GTIS), which shows a little improvement. According to the report, this upsurge has been primarily driven by recoveries in South America and Africa, with relatively little improvement made in other regions.
Though things are looking up, the state of business as a whole is still worrying. Although real conditions have not yet completely reflected business forecasts, which have been optimistic since November 2023 and have stabilised at about +25 percentage points.
Order intake is still negative but has been steadily increasing for the past 10 months, with South America and Africa seeing the greatest growth. Order backlogs have also seen a little improvement, with an average global backlog rising from 1.9 months in March 2024 to 2.2 months in September 2024.
Following a low of 68 per cent in November 2023, capacity utilisation increased to 75 per cent in September. However, 66 per cent of poll respondents expressed concern about the continued lacklustre demand, which remains a serious issue. Positively, fewer orders are being cancelled; 63 per cent of businesses report no cancellations, primarily in South America.
The average level of inventory is still present throughout the textile value chain; as of September, 55 per cent of businesses reported standard inventory levels. Retail and wholesale garment inventories in the US have been rising, which could indicate that the market is nearing a bottom.
The industry’s continued focus is on tackling persistent difficulties and maintaining recovery while navigating these complicated dynamics.
