Zurich, Switzerland – The global textile industry witnessed a modest upturn in May 2026, though the sustainability of this industry recovery remains uncertain, according to the 38th ITMF Global Textile Industry Survey. Conducted during the latter half of May, the survey indicates improvements across key indicators compared to March 2026, yet overall performance is still considered weak by historical benchmarks. Rising operational costs continue to pose a significant threat to this fragile rebound.
The survey observed an increase in the business situation balance, moving from -25 percentage points in March to -17 percentage points. Business expectations also rose positively to +16 percentage points from +5 percentage points. Similarly, order intake showed improvement, increasing from -25 percentage points to -9 percentage points. Average order backlogs stood at 2.5 months, while capacity utilisation reached 74%. Notably, order cancellations were contained, and inventory levels remained lean. This shift suggests an encouraging, albeit tentative, change in textile market trends.
Regional Disparities and Persistent Market Challenges
Despite the general positive shift in business sentiment, the global textile industry outlook presents an uneven picture across regions. Africa demonstrated the strongest performance across all metrics, including business situation, order intake, order backlogs, and business expectations. Europe and North & Central America also reported improvements. Conversely, major Asian manufacturing centers, particularly East Asia, registered the weakest results for both current business conditions and their six-month projections. Within the textile value chain, segments closer to the end consumer exhibited better performance, while upstream and capital goods sectors continued to grapple with greater difficulties.
Demand and cost pressures remain paramount concerns for textile manufacturers. Weak demand was cited as the primary issue by 53% of survey respondents, with raw material prices closely following at 52%. Energy markets and ongoing geopolitical tensions were each highlighted as major challenges by 42% of participants. The survey connects rising costs, particularly crude oil prices approaching US$100 per barrel and a 50% increase in petrol prices since March, to the conflict in Iran. These factors are fueling inflationary pressures and further squeezing profit margins across the entire textile value chain. The ITMF concluded that the long-term durability of this nascent industry recovery is largely contingent on developments in energy markets and the resolution of geopolitical conflicts.
