During the second quarter of 2023, the orders index for textile machinery witnessed a significant drop of 30% compared to the same period in 2022, according to ACIMIT, the Association of Italian Textile Machinery Manufacturers. The absolute index value stood at 85.1 points (basis 2015=100).

Reasons Behind the Decline

The decline in the textile machinery orders index is attributed to reduced collection of new orders both domestically and in foreign markets. Italy saw a 21% decrease in orders, while foreign markets experienced a more severe downturn of 31%. In absolute terms, the index settled at 81.9 points on foreign markets and 117.2 points in Italy. New orders for the second quarter corresponded to only 4.1 months of guaranteed production.

Impact on Production Capacity and Foreign Markets

ACIMIT's data also revealed that the production capacity utilization by Italian manufacturers reached 70% in the first half of 2023, a figure expected to remain stable in the second half of the year. However, uncertainty weighs heavily on foreign markets, with foreign trade statistics for the first quarter of 2023 indicating a slackening in Italian sales in important reference markets like Turkey, China, the United States, and Pakistan.

Hope for Recovery

Despite the challenges, ACIMIT President Marco Salvadè remains optimistic. While the decline in new orders precedes events like the international textile machinery exhibition ITMA, held in Milan last June, Salvadè emphasized that it is part of a negative trend persisting for several quarters. Feedback from over 400 Italian companies that participated in ITMA was positive, and Salvadè hopes that the contacts made during the event will lead to the demand for machinery in key textile machinery markets resuming a path towards growth.