In the global textile value chain, the two ends of the value chain are doing better than the middle. Fibre producers and apparel manufacturers are the only positive segment.
Spinners and finishers are lagging while textile machinery manufacturers continue to suffer from companies’ reluctance to invest.
However, the 40th International Textile Machinery Federation (ITMF) Global Textile Industry Survey (GTIS), conducted in September 2026, shows a slight improvement in the global business situation, well above the November 2023 lows.
Conditions nevertheless remain weak, in what has become a new normal of high uncertainty. Only South Asia and Africa are positive, while Europe, South America and North & Central America report the weakest conditions.
According to ITMF, business expectations for the next six months have improved in sharp contrast to the current situation.
However, 46% of participants expect no change, a sign that the optimism rests more on hope than on concrete signals.
Africa is by far the most optimistic region, while East Asia and Southeast Asia remain pessimistic, with fibre producers and garment producers being the most confident segment.
Textile machinery order intake edged up but remains weak, and orders in South America have fallen to a record low.
The global order backlog shortened slightly to 2.3 months, within the range of 2 to 2.5 months it has held since mid-2023, as most companies work on confirmed orders only.
Capacity utilisation rose to 71%, above the November 2023 record low of 68% but still well below the levels above 80% seen before late 2022.
Weak demand remains the main concern, cited by 56% of participants. Cost-related concerns are rising, led by high raw material and energy prices, which have pushed inflation up again since the war in Iran.
Concern about geopolitics has eased to 36%, from 46% in July. In response to US tariffs, companies are mainly diversifying into non-US markets, investing in automation and efficiency or absorbing the higher costs.
Order cancellations remain low at around 2% on average, though they have risen among finishers in three consecutive surveys.
Inventories remain lean in most regions, with Southeast Asia at a record low. The Americas are the exception: there, high inventories combined with weak order intake point to a build-up of unsold stock.
Image courtesy: ToI
