Order Intake Has Begun Showing Recovery Signs: ITMF Report
The latest ITMF Global Textile Industry Survey (GTIS) conducted in January 2024 revealed that order intake began showing recovery signs, with notable increases across regions except East Asia, particularly in North & Central America and South America.
The report informed that there has been a significant improvement in the business climate, signaling a potential turning point driven by better inflation rates, increased real wages, and consumer sentiment in the USA, alongside expectations of interest rate cuts.
“Business expectations for July 2024 reached a peak unmet since late 2021, fueled by improved order intakes and a more optimistic consumer demand outlook, despite ongoing cost concerns,” the ITMF report added.
According to ITMF, the average order backlog has stabilised to around two months since July 2023, with no change in January 2024, while capacity utilisation remained at the lowest level recorded or 67 percent, reflecting a cautious production outlook.
Concerns over weakening demand in the global textile value chain have decreased, with a drop in respondents citing it as a main concern to 67 percent in January 2024, the lowest since May 2023.
“Despite this weakening demand, the phase has led to reduced rather than cancelled orders, a departure from early pandemic responses,” the Switzerland based global textile machinery association observed.
Inventories in the textile value chain are deemed average by 57 percent of participants, with South Americans reporting higher levels and garment producers noting the lowest inventories, indicating a nuanced view of the current market conditions.
