Global Textile Industry Expectations Continue to Improve, Demand Remains the Top Concern

According to the latest survey by the International Textile Manufacturers Federation (ITMF), the operating conditions of the global textile industry remain unsatisfactory, with demand still weak and utilization rates staying low. Despite this, business expectations within the textile sector have shown a significant shift, with expectations rising across all regions.

In terms of operating conditions, 43% of respondents rated the business situation as poor, resulting in an index reading of -27 percentage points, indicating a state of continued dissatisfaction. Weak demand remains the primary concern, driven mainly by sluggish global economic growth, overcapacity, and significant market uncertainty. Optimism for the next six months has increased, with 44% of respondents expecting a more positive outlook, leading to an index of +32 percentage points, which has risen for four consecutive months.

Regarding orders, 43% of respondents described the situation as bad, with the index at -25 percentage points, unchanged from the previous survey. Only Africa and South America showed positive readings, with Africa, particularly North Africa, benefiting from the uncertainties created by US tariffs for other regions and increased investment from Turkey. Brazil's well-developed domestic textile supply chain has also shielded it from the negative impacts of global trade disruptions.

The survey indicates that the global backlog of unfilled orders stands at 2.3 months, slightly higher than the previous survey and better than the low point in March 2024 (1.9 months). The increase in unfilled orders amid weak demand is somewhat puzzling and may suggest a decline in operating rates rather than a genuine recovery in demand. The global textile capacity utilization rate is 71%, showing a slight decrease from the last survey.

The survey reveals that 71% of respondents ranked "demand" as their top concern, a proportion that has been rising steadily since January 2025, followed by "tariffs" and "geopolitics." Weak demand is closely linked to the Russia-Ukraine war and US tariff policies. Notably, "talent/labor shortage" ranks fourth with 20%, indicating that the challenge of automation extends beyond Europe and America, and the entire industry is facing dual pressures from digital transformation.

The global textile order cancellation rate remains stable at a low 3%, down from 5% in 2023. However, the reduction in cancellations reflects cautious purchasing attitudes by brands and retailers rather than strong demand. Companies are increasingly leaning towards smaller orders and more prudent procurement to mitigate risks from geopolitical issues and avoid inventory build-up as much as possible.

The global textile inventory index stands at -4 percentage points, higher than the -18 percentage points recorded a year ago. Amid geopolitical tensions, tariff policies, and slow economic growth, buyers are reluctant to build up stock. Across different segments, grey fabric and finished fabric manufacturers show the highest inventory index at +10 percentage points or more, while technical textiles and textile machinery face the most negative inventory levels, below -20 percentage points.