ITMF Survey: Global Textile Industry Business Conditions Ease Slightly, Outlook Remains Cautiously Positive

39th ITMF Global Textile Industry Survey shows weaker current business conditions, while expectations for the next six months remain in positive territory

The International Textile Manufacturers Federation (ITMF) has published the results of its 39th Global Textile Industry Survey (GTIS), conducted from 14 to 22 July 2026 among companies representing the global textile value chain.

According to the survey, 10% of respondents described their current business situation as good, 53% rated it satisfactory, and 37% considered it bad, resulting in a balance of -26 percentage points (pp). This compares with -17pp in May, although it remains above the lows recorded in 2023.

Business Conditions Weaken Across All Regions

The survey shows that all regions are now in negative territory.

• South Asia: -3pp
• North & Central America: -58pp

Among industry segments, brands and retailers were the only group reporting a positive balance at +11pp.

In contrast:

• Machinery manufacturers: -40pp
• Garment producers: declined from +5pp in May to -25pp

Six-Month Outlook Remains Positive

Business expectations for the next six months softened slightly, with the balance declining from +16pp to +14pp.

The survey also found that:

• 47% of respondents expect business conditions to remain unchanged.
• Africa recorded the strongest optimism at +50pp.
• South Asia followed with +32pp.
• Machinery manufacturers were the most optimistic industry segment with +36pp.

Orders, Capacity Utilisation and Backlogs Decline

Order intake weakened to -27pp, compared with -9pp in May, indicating that the May result may have been an outlier.

Other operational indicators included:

• Average order backlog: 2.3 months
• Global capacity utilisation: 71%

Regional capacity utilisation ranged from:

• 75% in South-East Asia
• 64% in North and Central America

Weak Demand and Geopolitics Continue to Challenge Industry

The survey identifies weak demand and geopolitical developments as the industry's primary concerns.

According to respondents:

• 56% cited weak demand as the biggest challenge.
• 46% identified geopolitics as a major concern.

The survey also noted that concerns relating to raw material prices, energy costs and tariffs have eased.

Tariffs were cited by 10% of respondents, compared with a peak of 40% in September 2025.

Inventory and Order Cancellation Trends Improve

Global order cancellations declined to 2%, while the inventory index showed improvement despite remaining below average.

The survey found that inventory levels continue to build in downstream segments, including brands and retailers, whereas upstream segments continue to maintain relatively lean stock levels.