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On average across all regions and all segments, the business situation along the entire textile value chain is still very favourable with +23 percentage points (pp), albeit lower than compared to November 2021 (+28pp), according to a survey conducted by the International Textile Manufacturers Federation (ITMF) in the second half of January 2022.
This high level is remarkable given the fast-rising infection number of the COVID-variant Omicron since the 11th ITMF Corona-Survey. The fact that a rising number of companies find themselves in a satisfactory business situation (48 per cent) is an indication for a strong and broad recovery, ITMF said in a press release.
ITMF conducted the 12th ITMF Corona-Survey among more than 270 companies around the world. For the fifth time since May 2021, companies were asked the same set of questions about their business situation, business expectation, order intake, order backlog, and capacity utilisation rate.
On average across all regions and all segments, the business situation along the entire textile value chain is still very favourable with +23 percentage points (pp), albeit lower than compared to November 2021 (+28pp), according to the latest survey conducted by the International Textile Manufacturers Federation (ITMF) in the second half of January 2022.
When it comes to the business expectations in six months, the global textile value chain remains very optimistic. While the balance between more favourable and less favourable has fallen from +33pp to +25pp, it needs to be considered that these expectations are built on a very favourable business situation. Or to put it differently, only 14 per cent of companies are anticipating a less favourable business by July 2022.
A look at the different regions has revealed that the business situation is in positive territory in all regions except for East Asia and Africa where the balance between good and bad business situations is negative. The expectations are very positive except for East Asia, the release added.
As for the different segments, the downstream segments – weavers/knitters, finishers/printers, and garment producers – are catching up with the upstream segments – fibre producers, spinners, and textile machinery producers.
The order intake has fallen from a high level of +40pp in November 2021 to +30pp in January 2022. This is in line with the slightly weaker business situation. Order intake expectations in January remained practically on the same level as in November (+40pp and +41pp, respectively).
“Since May 2021, the order backlog is hovering between 2.4 and 2.9 months. The expectations do not indicate a change in the next six months. The capacity utilisation rate continues to increase slowly but continuously since May 2021, indicating that the supply chain disruption is still a big – but hopefully a diminishing – concern,” ITMF explained.
Fibre2Fashion News Desk (RR)
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