Results of the 37th ITMF Global Textile Industry Survey

War, Energy Shocks, and Geopolitical Uncertainty Weigh on Industry Confidence

The International Textile Manufacturers Federation (ITMF) released findings from its 37th Global Textile Industry Survey (GTIS), conducted in March sharing how regions and segments are impacted by the latest geopolitical disruptions.

The 37th GTIS shows a deteriorating global business climate, with the global business situation balance falling to -25 percentage points as the US/Israel-Iran war disrupted energy markets. Africa was the only region posting a positive business situation and North & Central America recorded the steepest decline, while garment producers fared best among segments with textile machinery manufacturers remaining deeply negative.

The global business expectations balance collapsed from over +23pp to +5pp – the lowest since November 2022 – as stagflation risks comparable to the post-Ukraine invasion shock of 2022 are reviving. South America led regional optimism while South-East Asia was the most pessimistic. Brands & retailers were the most upbeat segment against a deeply negative outlook for weavers/knitters.

Geopolitics overtakes weak demand as the industry’s top concern

For the first time, geopolitics topped industry concerns at 50%, edging out weak demand at 49%, driven by the war in Iran and surging energy prices, higher raw material costs, and logistics disruptions from the Strait of Hormuz blockade. Notably, tariffs dropped sharply as a concern from 31% to 13%. In response, firms intensify efforts towards market diversification away from the US and internal cost absorption, while relocation of productions and other capital-intensive strategies remain low.

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