The global textile industry continues to face challenging market conditions driven by ongoing weak demand. According to the latest release of the Global Textile Industry Survey (GTIS) by the International Textile Manufacturers Federation (ITMF), confidence levels among member businesses have generally slipped, though brands and retailers stand out by maintaining higher optimism compared to the rest of the supply chain.

The survey, which gathered responses globally from companies across the entire textile value chain between July 14 and 22, revealed that 10 percent of respondents rated their business situation as good, 53 percent as satisfactory, and 37 percent as bad. This places the business balance at -26 percentage points, down from -17 percentage points in May. Nonetheless, current conditions remain much better than the lows experienced during 2023, when the industry struggled with post-pandemic inventory gluts exacerbated by inflation.

Business sentiment varied significantly across geographic regions and industry segments. South Asia posted a relatively neutral outlook at -3 percentage points, whereas North and Central America dropped to -58 percentage points. In terms of segments, brands and retailers remained positive at +11 percentage points, while machinery manufacturers were the weakest segment at -40 percentage points, followed by garment producers whose business ratings fell from +5 percentage points in May to -25 percentage points.

On the order side, intake dropped to -27 percentage points from -9 percentage points in May, which the ITMF noted was likely an outlier. Average order backlogs shrank slightly to 2.3 months, and global capacity utilization slipped to 71 percent, ranging regionally from 75 percent in Southeast Asia down to 64 percent in North and Central America. Despite these operational pressures, participants reported improvements in their outlook on costs and risks. The primary concerns remain weak demand (cited by 56 percent of respondents) and geopolitical uncertainty (46 percent), while worries regarding raw material prices, energy costs, and tariffs have receded notably.

Overall, the global survey results indicate that textile industry players are cautious rather than alarmed. Although machinery makers and North American companies face the heaviest pressure, expectations for the second half of the year largely range from neutral to optimistic.