The global textile industry is facing dismal prospects. So says the International Textile Manufacturers Federation.

Indicators for order intake, order backlog, and capacity utilisation rate have fallen. The business situation is very bad in Asia, although improving. While all segments have found themselves in negative situations, spinners’ situation has plunged to an unprecedented level. Expectations have improved in South Asia, North and Central America, and Africa. Spinners have also better prospects for March 2023, globally, indicating potential relief.

Companies in north and central and especially in south America have seen order intakes increase while the Asian regions continue struggling with an unsatisfactory order situation. Order backlogs have fallen on an average across all regions. South America is an exception; both order intake and backlog have increased. Only dyers/finishers and knitters/weavers have experienced a small increase in order backlog. In all other segments order backlog has fallen. While the capacity utilization rate dropped globally in September 2022, it increased in South America.

Fiber 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.