The 15th International Textile Manufacturers Federation (ITMF) Corona-Survey shows that the business situation in the textiles industry plunged into negative territory in July 2022 and that the business situation is worse in Asia than in the rest of the world. Textile machinery is the only segment still in positive territory, according to the organisation.

The survey states that business expectations have also turned negative for the first time since the start of survey in May 2021. South-East Asia and South America are relatively more optimistic, downstream segments as well.

Order intake is weakening globally but is still in positive territory, according to the ITMF. “Here too, expectations have turned negative in all textile segments except for textile machinery producers. A difficult period is to be expected ahead. Order intake is deteriorating in all Asian regions and stable in North America, South America, and Africa,” the organisation reports.

Order backlog has been slightly decreasing in the past few months, from a maximum of 3.1 months in March 2022 to 2.9 months in July and is expected to continue falling until March 2023.

The survey also says that the capacity utilization rate has been stagnating since the beginning of 2022, on average, and that this indicator is rising in Africa and North and Central America. South Asia reports a strong decrease in capacity utilization, so do fibre and home textile producers as well as spinners.

“While high prices for raw materials, energy, and logistics are still regarded as major supply side concerns, they have somewhat eased compared to May 2022. The prospects of weakening demand caused by surging inflation are worrisome,” the ITMF concludes.

www.itmf.org