June 22, 2024
Industry

Signs Of Cautious Optimism In Textile Business Climate: ITMF

The latest International Textile Machinery Federation (ITMF) global textile industry survey conducted in March 2024 reveals a textile business climate with signs of cautious optimism amidst ongoing challenges.

“Despite a slight recovery in the business environment from November 2023 to January 2024, the overall situation remained dire in March 2024, underscoring the persistent difficulties companies face across the textile value chain,” ITMF said.

Weak demand continues to be the central concern, overshadowing slight improvements in order intake and capacity utilisation rates.

Order intake in March 2024 indicated a marginal improvement, particularly in South-East and South Asia, with fibre producers and weavers and knitters experiencing the most significant growth.

According to ITMF, the global average order backlog dipped slightly while capacity utilisation rates saw a minor increase to 70 percent in March, reflecting a slow adaptation to the prevailing economic conditions.

The industry’s resilience is also evident in the relatively low rate of order cancellations, suggesting a degree of stability despite weak demand. Inventory levels are considered average by most survey respondents.

In the US, inventories of brands and retailers remain high while wholesalers have successfully reduced inventories to near pre-pandemic levels.

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