40th ITMF Global Textile Industry Survey highlights weak demand, rising costs and cautious investment across the textile value chain
The global textile industry recorded a slight improvement in business conditions in September 2026, although the sector continues to face weak demand, rising costs and high uncertainty, according to the 40th ITMF Global Textile Industry Survey (GTIS).
Conducted from 21 to 29 September 2026, the survey found that the global business situation improved to -23 percentage points (pp), compared with the -46pp recorded in November 2023. Despite the improvement, overall conditions remain weak.
At the regional level, South Asia (+13pp) and Africa (+9pp) were the only regions reporting positive business conditions. Europe (-36pp), South America (-44pp) and North & Central America (-56pp) recorded the weakest results.
Across the textile value chain, fibre producers were the only segment with a positive business situation at +17pp. Spinners recorded -33pp, while finishers stood at -42pp. Textile machinery manufacturers recorded -35pp, reflecting continued reluctance among companies to invest.
Textile Industry Outlook Improves
Business expectations for the next six months improved to +19pp, contrasting with the weak current business situation. However, 46% of participants expect no change, indicating that the improved outlook remains uncertain.
Africa recorded the strongest expectations at +59pp, while East Asia (-20pp) and Southeast Asia (-6pp) remained pessimistic. Fibre producers were the most confident segment, with expectations reaching +67pp.
Order Intake Remains Weak
Global order intake edged up to -24pp, but remained weak. South America recorded a new low of -69pp.
Rising costs and inflation continue to weigh on the outlook, with the survey indicating that a significant recovery in the coming months is unlikely.
The global order backlog shortened slightly to 2.3 months, remaining within the 2 to 2.5-month range recorded since mid-2023. Most companies continue to work primarily on confirmed orders.
Capacity utilisation increased to 71%, compared with the 68% record low recorded in November 2023. However, utilisation remains below the levels of more than 80% seen before late 2022.
Weak Demand Remains the Main Concern
Weak demand remains the leading concern among textile companies, cited by 56% of participants.
Cost-related concerns are also increasing, with 42% of participants citing high raw material prices and 41% identifying high energy prices as concerns. These factors have contributed to renewed inflation since the war in Iran.
Concern about geopolitics declined to 36%, compared with 46% in July.
Companies are responding to US tariffs through several measures. 29% are diversifying into non-US markets, while 23% are investing in automation and efficiency and another 23% are absorbing the higher costs.
Inventories Remain Lean Across Most Regions
Order cancellations remain low at around 2% on average, although cancellations among finishers have increased for three consecutive surveys.
Inventories remain lean across most regions, with Southeast Asia recording a record low. The Americas are an exception, where high inventories combined with weak order intake indicate a build-up of unsold stock.
The survey results point to a textile industry that has improved from the lows recorded in November 2023 but continues to operate under significant pressure. Weak demand, elevated raw material and energy costs, inflation and cautious investment remain key factors shaping business conditions across the global textile value chain.
Source: International Textile Manufacturers Federation (ITMF)