The 40th ITMF survey, conducted between 21 and 29 September 2026, has revealed a modest uptick in the global textile business-situation indicator, though conditions across much of the industry remain under significant strain. The global business-situation indicator came in at -23 percentage points — a notable improvement from the -46 percentage points recorded in November 2023, but still firmly in negative territory. The International Textile Manufacturers Federation noted that uncertainty has become a persistent feature of current trading conditions across the global textile market.
Regional Performance Remains Sharply Divided
Across global regions, the picture was far from uniform. South Asia emerged as the strongest performer, registering a positive current business conditions reading of +13 percentage points, while Africa followed at +9 percentage points — making these two the only regions to report positive readings in the ITMF textile survey.
In contrast, North and Central America recorded the weakest regional reading at -56 percentage points. South America followed at -44 percentage points, and Europe posted a reading of -36 percentage points, underscoring the breadth of challenges facing manufacturers across developed and emerging economies alike.
Value Chain Performance Varies Considerably
Performance across the textile value chain also differed meaningfully by segment. Fibre producers stood out as the only segment to report positive current business conditions, with a reading of +67 percentage points. Spinners, however, recorded -33 percentage points, while finishers reported -42 percentage points. Textile machinery manufacturers registered -35 percentage points, which the survey attributed to companies’ continuing reluctance to commit to capital expenditure — a reflection of broader caution prevailing through the global textile market.
Six-Month Outlook Improves, Though Confidence Is Uneven
Forward-looking sentiment was more encouraging. The global expectations indicator for the next six months reached +19 percentage points. However, 46% of respondents expected no change in conditions, indicating that improved sentiment has not yet translated into broadly stronger trading signals on the ground.
Africa was the most optimistic region with an expectations reading of +59 percentage points, while East Asia at -20 percentage points and South-East Asia at -6 percentage points were the only regions to retain a negative outlook for the period ahead. Among industry segments, fibre producers again led with an expectations balance of +67 percentage points.
Order Intake, Demand Concerns, and Inflationary Pressures
Order intake improved only marginally to -24 percentage points, remaining in negative territory. South America reported a record low of -69 percentage points in this category, pointing to particularly difficult demand conditions in the region.
Weak demand remained the concern most frequently cited by respondents in the ITMF survey, with 56% of participants flagging it as a primary issue. High raw-material prices were cited by 42% of respondents, and energy costs were flagged by 41%. The federation noted that rising costs and inflation could limit the scope for a meaningful near-term recovery across the global textile market.
The survey also linked renewed inflationary pressure specifically to the war in Iran. Meanwhile, concern over geopolitics fell to 36% of respondents, down from 46% recorded in the July survey.
US Tariffs Prompt Varied Industry Responses
Companies have responded to US tariffs in a range of ways. Nearly three in ten respondents — 29% — said they were actively diversifying into markets outside the United States. A further 23% were investing in automation and efficiency measures, while the same proportion reported absorbing higher costs directly.
Order Backlogs, Capacity Utilisation, and Inventory Levels
Order backlogs shortened slightly to 2.3 months, remaining within the 2.0-to-2.5-month range that has been observed since mid-2023. The ITMF noted this reflects a prevailing tendency among companies to operate primarily against confirmed orders rather than building longer production pipelines.
Capacity utilisation increased to 71%, rising above the 68% low recorded in November 2023. Even so, it remained well below the levels of more than 80% reported prior to late 2022 — a gap that continues to weigh on the broader outlook for the global textile market.
Order cancellations held steady at approximately 2% on average, though finishers recorded increases for three consecutive survey periods. Inventory levels were generally lean, with South-East Asia reporting a record low. The Americas were an exception: relatively high inventories combined with weak incoming orders pointed to a build-up of unsold stock, according to the ITMF textile survey findings.
