The Italian textile machinery sector is grappling with a significant cooling of demand, as fourth-quarter 2025 data reveals a 36 per cent plunge in order intake compared to the previous year. This downturn reflects a broader stagnation in global capital expenditure, with domestic demand particularly hard-hit, contracting by 50 per cent. Though slightly more resilient, foreign orders also retreated by 34 per cent during the October-to-December window. The orders index has consequently recalibrated to 31.5 points against a 2021 baseline of 100. Despite this 25 per cent Q-o-Q slide, the industry maintains a production backlog capable of sustaining operations for approximately 2.9 months, providing a slim buffer as manufacturers enter a volatile 2026.

India emerges as a critical growth counterweight

While consolidated annual figures show a 22 per cent decline in total order intake for 2025, a geographical shift in trade patterns is offering a strategic lifeline to Italian exporters. India has surged to become the primary destination for Italian textile technology, recording a remarkable 46.7 per cent growth in exports during the first ten months of 2025. This pivot to high-potential markets is viewed as essential for offsetting the double-digit retreats seen in traditional hubs. Marco Salvadè, President, ACIMIT, suggests, the high valuation of Italian precision engineering in South Asia remains a fundamental pillar for the sector’s eventual recovery, even as domestic investment remains paralyzed by high interest rates and cautious industrial policy.

Spinning sector leads gradual stabilization hopes

Beneath the aggregate decline, a divergence in sectoral performance is beginning to emerge, with spinning machinery exhibiting signs of renewed dynamism. While the overall forecast for the first quarter of 2026 remains guarded, an increasing number of manufacturers are signaling expectations of stability or incremental improvement. The industry’s recovery roadmap is increasingly tied to high-margin innovation and quality rather than volume, as firms seek to capture the next cycle of global textile modernization. Whether this optimism can translate into a reversal of the 2025 trend - where domestic orders declined by 28 per cent - depends largely on the speed of credit easing and the continued expansion of the Indian apparel manufacturing base.

ACIMIT (Association of Italian Textile Machinery Manufacturers) represents an industrial sector comprising approximately 300 companies. Primarily focused on high-tech exports, the Italian machinery industry is a global leader in spinning, weaving, and finishing technologies. With 2025 characterized by a 22 per cent order intake decline, the association is now prioritizing expansion in strategic Asian markets like India to drive its 2026 financial recovery.