The global textile industry is showing early signs of recovery, although the latest findings from the 38th ITMF Global Textile Industry Survey suggest that the improvement remains fragile and subject to ongoing economic and geopolitical pressures.
Conducted during the second half of May 2026, the survey revealed gains across several key industry indicators, including business sentiment, order intake, order backlogs, and capacity utilisation compared to March. However, most indicators continue to remain below historical averages, highlighting the cautious nature of the recovery.
The business situation balance improved to -17 percentage points, compared to -25 percentage points in March. Business expectations also strengthened, rising to +16 percentage points from +5 percentage points previously. Order intake showed improvement, moving to -9 percentage points from -25 percentage points, while order backlogs increased to 2.5 months and capacity utilisation reached 74%.
The survey also reported stable order cancellation levels and relatively lean inventory positions, signalling improved operational conditions across parts of the industry.
Regional performance, however, remained uneven. Africa emerged as the strongest-performing region, leading improvements in business conditions, order intake, order backlogs, and business expectations. Europe and North & Central America also recorded positive momentum. In contrast, key Asian manufacturing hubs continued to lag behind, with East Asia reporting the weakest assessments of both current business conditions and future outlook.
Across the textile value chain, sectors positioned closer to end consumers performed relatively better, while upstream manufacturing segments and capital goods producers faced greater challenges.
Despite the encouraging indicators, significant concerns remain. Weak demand continues to be the industry’s primary challenge, cited by 53% of survey participants. Rising raw material costs followed closely at 52%, while energy prices and geopolitical uncertainty were each identified as concerns by 42% of respondents.
The survey noted that escalating geopolitical tensions, including the conflict involving Iran, have contributed to higher energy costs. Crude oil prices have climbed to around USD 100 per barrel, while gasoline prices have increased by approximately 50% since March, adding inflationary pressure and compressing profit margins across the sector.
According to the survey findings, the sustainability of the current recovery will depend heavily on future energy price trends and the resolution of ongoing geopolitical conflicts.
