ITMF Survey Shows Slight Improvement, but Global Textile Industry Remains Under Pressure
Global business situation improves to -23pp, while weak demand, raw material and energy costs continue to weigh on textile companies
The 40th ITMF Global Textile Industry Survey (GTIS), conducted from September 21 to 29, 2026, indicates a slight improvement in the global textile industry’s business situation. The global balance rose to -23 percentage points (pp), compared with the low of -46pp recorded in November 2023, although overall conditions remain weak amid continued uncertainty.
The survey shows significant differences across regions and segments of the textile value chain. South Asia (+13pp) and Africa (+9pp) were the only regions reporting positive business conditions, while Europe (-36pp), South America (-44pp) and North & Central America (-56pp) recorded the weakest results.
Across the value chain, fibre producers were the only segment with a positive balance at +17pp. Spinners recorded -33pp, while finishers stood at -42pp. Textile machinery manufacturers remained under pressure at -35pp, with companies continuing to show reluctance to invest.
Expectations Improve Despite Weak Current Conditions
Business expectations for the next six months improved to +19pp, contrasting with the weak current business situation.
However, 46% of survey participants expect no change, indicating that the improvement in expectations is not yet supported by broad expectations of a significant change in business conditions.
Africa recorded the strongest outlook at +59pp, while East Asia (-20pp) and Southeast Asia (-6pp) remained pessimistic. Fibre producers were the most optimistic segment, with expectations reaching +67pp.
Order Intake Remains Weak
Global order intake edged up to -24pp, but remained at a weak level. South America recorded a new low of -69pp.
The survey indicates that rising costs and inflation continue to make a significant recovery in order intake unlikely in the coming months.
The global order backlog declined slightly to 2.3 months, remaining within the range of 2 to 2.5 months that has prevailed since mid-2023. According to the survey, most companies are working primarily on confirmed orders.
Capacity Utilisation Reaches 71%
Global capacity utilisation increased to 71%, moving above the November 2023 low of 68%. However, utilisation remains below the levels above 80% recorded before late 2022.
Weak demand continues to be the industry's main concern, cited by 56% of participants.
Cost pressures are also becoming more prominent. High raw material prices were cited by 42% of respondents, while 41% identified high energy prices as a concern. These factors have contributed to renewed inflationary pressure since the war in Iran.
Concern over geopolitics declined to 36%, compared with 46% in July.
Companies Respond to US Tariffs
In response to US tariffs, textile companies reported several measures to manage the impact. The most common response was diversification into non-US markets (29%).
Other responses included investment in automation and efficiency (23%) and absorbing higher costs (23%).
Order Cancellations and Inventories
Order cancellations remained relatively low, averaging around 2%. However, cancellations among finishers have increased for three consecutive surveys.
Inventories remain lean across most regions, with Southeast Asia recording a record low.
The Americas represent an exception, with high inventory levels combined with weak order intake indicating a potential build-up of unsold stock.
Overall, the 40th ITMF Global Textile Industry Survey points to a modest improvement in the global textile industry's current conditions and six-month expectations, but continued weak demand, cost pressures, low capacity utilisation and cautious investment continue to weigh on the sector.