The 40th ITMF Global Textile Industry Survey (GTIS, conducted September 21–29, 2026) shows the global textile industry's business situation edging up slightly to -23 percentage points, markedly better than the November 2023 low of -46pp, yet overall still weak, with high uncertainty now the new normal. Only South Asia (+13pp) and Africa (+9pp) were positive, while Europe (-36pp), South America (-44pp), and North America & Central America (-56pp) were weakest; both ends of the value chain outperformed the middle: fiber producers (+17pp) were the only positive segment, spinning (-33pp) and finishing (-42pp) lagged at the bottom, and textile machinery makers (-35pp) remained weighed down by companies' reluctance to invest.

Key Points

  • The global business situation index rebounded to -23pp, but Europe (-36pp), South America (-44pp), and North America & Central America (-56pp) remained negative, with only South Asia (+13pp) and Africa (+9pp) positive.
  • Expectations for the next six months rose to +19pp, with 46% of respondents expecting no change; Africa (+59pp) was most optimistic, while East Asia (-20pp) and Southeast Asia (-6pp) remained pessimistic.
  • Capacity utilization rose to 71%, order backlogs shortened to 2.3 months, and 56% of respondents cited weak demand as their top concern.

On expectations, the six-month business outlook rose to +19pp, in sharp contrast to the current situation; however, 46% of respondents expected no change, suggesting the optimism is based more on hope than on hard signals. By region, Africa (+59pp) led by a wide margin, while East Asia (-20pp) and Southeast Asia (-6pp) remained pessimistic. By segment, fiber producers (+67pp) were the most confident.

Order intake edged up to -24pp, still weak, with South America falling to a record low of -69pp. Rising costs and inflation make a significant recovery in the coming months unlikely. Global order backlogs shortened slightly to 2.3 months, within the 2–2.5 month range since mid-2023, with most companies scheduling production only against confirmed orders. Capacity utilization rose to 71%, above the record low of 68% in November 2023, but still far below the 80%-plus levels seen before late 2022.

Weak demand remained the top concern, cited by 56% of respondents. Cost-related worries rose, mainly from raw materials (42%) and high energy prices (41%), as inflation picked up again since the Iran war. Geopolitical concerns fell to 36% from 46% in July. In response to US tariffs, companies mainly took three approaches: shifting to non-US markets (29%), investing in automation and efficiency (23%), and absorbing higher costs themselves (23%).

Order cancellation rates remained low at around 2% on average, but the finishing segment has risen for three consecutive surveys. Inventories stayed low in most regions, with Southeast Asia hitting a record low; the Americas were the exception, where high inventories combined with weak orders point to an accumulation of unsold stock.

From an industry perspective, this survey paints a value-chain picture of "both ends good, the middle tough": the raw materials end holds up, while spinning, finishing, and equipment manufacturing remain under pressure, with insufficient demand intertwined with costs, inflation, and geopolitical risks—meaning cost pressures on the supply side for used-clothing feedstock and recycled fibers are unlikely to ease in the short term.

Source: Results Of The 40th ITMF Global Textile Industry Survey : Slight Improvement, But The Textile Industry Remains Under Pressure · Originally published 2026-10-06