The global textile industry has been experiencing a negative trend since June 2022, with a "perfect storm" scenario of high production costs and relatively low demand affecting companies across all segments, according to recent survey done by ITMF

This has resulted in a decrease in order intake, which has been steadily declining since November 2021, with weak demand cited as a major concern since July 2022. The industry has also been grappling with the issue of inflation, which remains a top concern worldwide.

However, there is some optimism among industry players, with expectations for the business climate in six months' time showing improvement since November 2022. It remains unclear whether this is due to a belief that the situation cannot get much worse or anticipation of a well-founded economic normalisation.

Despite these challenges, there are some positive signs for the industry, with order cancellations remaining relatively low and inventory levels stabilising. The 19th Global Textile Industry Survey (GTIS) found that 53% of respondents had no order cancellations during the last four months, with South America and spinners and weavers being particularly affected. Additionally, 58% of respondents rated inventory levels as average, with home textile producers reporting the highest levels of inventory.

As the industry looks towards the second half of 2023, there is hope that these positive signs will continue and lead to a brighter future. However, companies must remain vigilant and proactive in navigating the challenges they currently face.