The business situation of the global textile industry in September 2022 was relatively the worst in Asia despite improvements.
The indicators for order intake, order backlog, and capacity utilization rate also fell, globally. While all segments found themselves in negative situations, spinners’ situation has plunged to an unprecedented level.
According to the media reports based on the 16th International Textile Manufacturers Federation (ITMF) Global Textile Industry Survey (GTIS), a positive sign for the future is that global expectations have stopped falling in September 2022, albeit staying in negative territory and therefore indicating difficult times ahead.
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 and especially in South America saw order intake increase while the Asian regions continued struggling with an unsatisfactory order situation, the report added.
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, the order backlog fell. While the capacity utilization rate dropped globally in September 2022, it increased in South America, ITMF said. Fibre producers registered a steady decrease in capacity utilization rate and home textile producers seem to have reversed their downward trend.
Weakening demand, high raw material prices, high energy prices, and inflation are the four major concerns of the global textile industry for the next six months. The concern about transportation costs has fallen significantly. Concerns about geopolitics on the other hand have increased significantly in the past two months.