The global textile industry continues to grapple with a challenging business environment, according to the International Textile Manufacturers Federation's (ITMF) Global Textile Industry Survey (GTIS) conducted in July 2024. While the current business situation remains bleak due to persistently low order intake, there is cautious optimism for improvement in the next six months.

Order intake showed a slight improvement in July, reaching -20 percentage points (pp) compared to -24pp in May and a significant recovery from the -50pp recorded in November 2023. Despite this, capacity utilization dropped slightly to 68 per cent, a level last seen at the end of 2023.

Weak demand remains the primary concern for 66 per cent of survey participants. Geopolitical tensions have emerged as the second major concern, with 40 per cent citing it as a significant issue, reflecting the impact of global conflicts on consumer and investor sentiment. High costs, particularly in logistics (24 per cent), raw materials (27 per cent), and energy (22 per cent), continue to strain the industry.

Notably, order cancellations are no longer a significant problem, and inventory levels across the textile value chain are stable. Retailers and brands, who had struggled with excess inventory since late 2022, have now reduced stock to manageable levels, potentially leading to increased orders in the coming months.