The new order index, undelivered order index and start-up rate of the textile industry all decreased globally

According to the 17th survey of the International Textile Federation (ITMF), the average business situation of the global textile industry in November 2022 will further deteriorate. Meanwhile, global textile industry expectations for the next six months remain negative, just not falling further. Globally, the new orders index, the backlog index and the operating rate all decreased.

The survey showed that the textile business in the three regions of Asia and Europe remained poor. Business in North and Central America recovered significantly. With the exception of the textile machinery business as a whole, which continued to enjoy a large order backlog, all other textile businesses were negative, especially fiber manufacturers and yarn manufacturers. Global textile business expectations remain negative, but have remained at -10 percentage points since July. Operating expectations in South Asia improved significantly, reaching +10 percentage points, and Europe was -30 percentage points. Forecasts for all categories of textile business remained negative, with four of the seven categories showing signs of improvement.

In November, the textile new order index plunged, reflecting the fact that the textile business continued to deteriorate and demand continued to decline. Only North and Central American companies reported overall better orders, while all other regions reported poorer orders. Except for Southeast Asia and North/Central America, the undelivered orders index decreased, and the only increase was in downstream garment and home textile enterprises. The operating rate of textiles around the world has decreased, and only the operating rate of textile machinery has increased.

Weakening demand is currently the biggest problem for the global textile industry, followed by the root cause of the decline in demand, that is, high energy prices and raw material prices lead to high inflation. The good news is that shipping costs are now less of a concern, but geopolitical issues have intensified in the past two months.