The May 2024 ITMF Global Textile Industry Survey (GTIS) reveals a stagnant textile business climate, with only marginal improvements. While more companies now rate their business as "satisfactory," the industry continues to face a dearth of orders and high costs, squeezing profit margins. Despite positive business expectations for the past year, these reflect optimism rather than actual progress.

Order intake balance has slightly improved, with expectations for the next six months trending upwards. The order backlog increased slightly from 1.9 months in March to 2.1 months in May, though this is not yet a positive trend. Capacity utilization in May rose marginally to 71 per cent, up from the end of 2021’s peak of 80 per cent. Better utilization rates are anticipated in the coming six months.

Persistent weak demand, high raw material and energy prices, geopolitical concerns, and labor shortages remain critical issues. Notably, 58 per cent of respondents did not experience order cancellations in May, a slight decrease from March. Africa and Europe reported fewer cancellations, whereas the Americas saw higher rates.

Inventory levels remain stable, with North America and spinners showing the highest levels. Brands and retailers continue to hold high inventories, though these are gradually decreasing. The industry’s prolonged negative cycle forces many companies to operate at a loss or with reduced capacity, with no significant turnaround expected in 2024.