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Textile Value Chain Hits Rock Bottom in May 2023

In May 2023, the textile value chain's global business situation worsened, hitting a new low of -36 percentage points. This deepened the industry's struggle as companies grappled with declining order intake and rising production costs, creating a perfect storm. Experts project this challenging scenario to persist until the year's end, according to the majority of global textile value chain forecasts.

Facing Persistent Challenges

Although expectations have slightly diminished after a positive start to the year, companies' outlook for the business climate in six months has gradually improved since November 2022.

The 20th ITMF Global Textile Industry Survey shows that order intake reached a new low in May, significantly impacting North & Central America and the fiber segment. "Weakening demand" has been a persistent concern since July 2022, with "inflation" gaining prominence as a global issue. Geopolitical worries have also escalated and are now among the primary concerns.

While the survey indicates relatively low order cancellation levels, there has been a slight increase compared to four months ago. 

Inventory levels experienced a minor decline in May, particularly in South America, where the highest inventory level was recorded. Home textile producers and dyers/finishers/printers reported the highest inventory levels among different segments.

Overall, the textile industry faces a challenging period as it navigates through poor order intake, soaring production costs, and mounting concerns regarding inflation and geopolitics.

 

 
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