Cir(008)/2024-February 07, 2024

Committee:

Dear Sirs/Madam,

Sub.: Results of the 24th ITMF Global Textile Industry Survey – reg.

This is to inform you all that the International Textile Manufacturers Federation (ITMF) conducted the last Global Textile Industry Survey (GTIS) in January 2024 to assess the health of the global Textile & Apparel Industry. The survey indicates that the indicators for business situation and order intake improved in January 2024, possibly indicating an inflection point in the textile industry’s ongoing negative business cycle. The major findings of the survey are as below:

• Improved Business Climate: Significant improvement in business climate potentially due to better inflation rates, real wages, consumer sentiments in the USA along with interest rate cuts expectations.

• Increased Business Expectations: Reached highest for July 2024 since 2021 due to improved order intake and optimistic consumer demand outlook. However, costs are still an issue, especially energy, raw materials and labour costs.

• Recovered Order Intakes: After reaching a peak of 3.1 months, the average order backlog declined and now it has stabilized around 2 months since July 2023, with no change in January 2024.

• Capacity Utilization Remain Low: In January 2024, the capacity utilization remained at the lowest level recorded (67%), reflecting a cautious production outlook. (participants did not factor the positive expectations in capacity utilization)

 

• Lesser concern for low global demand: Concerns over weakening demand in the global textile value chain have decreased, with a drop in respondents citing it as a main concern to 67% in January 2024 from 77% in November 2023, the lowest since May 2023.

• Shift from order cancellation to reduced orders: Despite the weakening demand, industries are now reporting reduced orders rather than canceled orders, a departure from early pandemic responses.

• Average Inventories: Inventories in the textile value chain are deemed average by 57% of participants, up from 53% in November 2023. Amongst the segments, garment producers are reporting the lowest inventories.

The detailed survey is given in the ITMF news letter (page 6 to page 14) which is attached for the reference of the members.

Placed for your necessary information.

Best regards,

 

(Chandrima Chatterjee)

Secretary General