The Survey Data Of The International Textile Federation Released The Global Textile Business Situation And Business Expectations

Since the International Textile Federation began the global textile industry survey in 2021, the business situation has been at a new low point. High inflation and rising interest rates are the main driving factors of the current global economy, but the core issues of the textile supply chain in 2023 are high brand inventory and retail level.

As the global economy opened up after the epidemic, consumer demand surged, and brands and retailers increased orders to meet pent up demand. With the rise of inflation, especially after the outbreak of the Russian Ukrainian conflict in February 2022, the demand for consumer goods slows down, while the inventory remains high.

Business situation

The interviewee of the 18th International Textile Federation Global Textile Industry Survey said that since November 2021, the order volume has continued to decline. In January 2023, except for North America, Central America and fiber producers, the indicators of all regions and sectors are negative. The latter's orders rose for the first time since last summer. Due to the restrictions on orders from brands and retailers, the previously high backlog of global orders also declined steadily from 3.1 months in March 2022 to 2.4 months in January 2023. The inhibitory effect of early supply chain disruptions further helps reduce the backlog of orders by improving global trade flows, leading to a slight increase in global capacity utilization (mainly driven by fiber producers and spinners).

　　 The previously high global order backlogs also steadily decreased from 3.1 months in March 2022 to 2.4 months in January 2023, mainly due to brand and retailers’ restraint to place orders.

Business expectations

The business expectation has risen after six months, and the respondents are positive and optimistic about the business expectation in June 2023. Textile manufacturers expect a better situation due to two important factors. First of all, the current global energy situation has improved a lot. The winter in Europe is warmer, and the energy prices (especially the natural gas prices) in Europe and Asia have fallen back to the level before the Russia Ukraine conflict. Second, China has ended the dynamic zero epidemic policy. With the rapid opening of the border, the demand for tourists and imports of goods from China and abroad is expected to increase. With all other conditions unchanged, the global economy will grow at a higher than expected level, and the global textile industry will benefit.

(Source: CHINA TEXTILE)