The global textile industry is showing early signs of stabilisation after a prolonged downturn, although weak demand continues to weigh on overall business conditions, according to the latest survey by the International Textile Manufacturers Federation (ITMF).
Findings from the 37th Global Textile Industry Survey indicate that business sentiment remains negative, extending a slowdown that has persisted since 2023. However, the pace of decline is easing, suggesting the industry may be approaching the bottom of its cycle.
Demand remains the primary challenge across all regions. Sluggish retail recovery, cautious consumer spending, and lingering inventory imbalances following the post-pandemic surge continue to suppress new orders.
Industry feedback reflects cautious optimism. While markets remain under pressure, the rate of deterioration has slowed, indicating a gradual improvement in outlook.
Order intake is beginning to stabilise, with average backlogs holding at around two to two-and-a-half months. Capacity utilisation remains moderate, suggesting that although factories are not operating at full capacity, the sharp decline in activity has eased.
The survey also highlights notable regional differences. Africa and South America reported relatively stronger conditions, while East Asia and parts of Europe continue to face challenges due to overcapacity and weak demand. These disparities are increasingly shaping global sourcing strategies as buyers reassess cost efficiency and supply chain resilience.
Looking ahead, industry expectations for the next six months have turned modestly positive. Companies anticipate gradual demand recovery, although risks related to inflation, trade dynamics, and geopolitical uncertainty remain.
For key exporting nations like Bangladesh, the findings present a mixed outlook. Continued weak demand may sustain pricing pressure, but improving order trends could support export volumes, especially as buyers diversify sourcing strategies.
Overall, the ITMF survey suggests the global textile industry is transitioning from contraction toward stabilisation. While a full recovery is not yet visible, the data indicates that the worst phase of the downturn may have passed.
