Global order intake balance stagnates from Jan-Mar 2023: ITMF

Global expectations for order intake in six months’ time are continuously improving and have now reached 0 percentage points (pp), according to the 19th ITMF Global Textile Industry Survey (GTIS), which was conducted in the second half of March 2023.

The evolution of both current and future order intake is in line with both business situation and business expectations. Current order intake is mostly poor given the fact that demand is weak. But companies are anticipating improved order intake in the second half of 2023 due to relatively few order cancellations and due to lower inventory levels. In other words, companies across the board are expecting a slow way back to a more normal (stable) business environment.

A slowdown in the deterioration of order intake may be an indicator that the end of the current negative business cycle is close. Strong uncertainties about the moment when a negative business trend will turn positive nevertheless exist and differ amongst regions. In the three Asian regions, the negative trend registered was flattening at the end of 2022 but plunged again in March 2023. In Europe (including Turkiye), the indicator further follows a constant negative slope and does not show any sign of improvement.

The high volatility recorded in Africa places the indicator in positive territory in March 2023 but does not allow inferring any clear trend. Order intake in the Americas has been better than observed in the rest of the world since the start of the survey. The situation in North and Central America has nevertheless deteriorated constantly since mid-2022 and has now reached 0 pp. Order intake plunged in negative territory in South America at the end of 2022 but sprang back to 0 pp in March 2023.

This indicator is negative in all segments along the value chain. Most recorded a negative evolution since the start of the year. The situation is worse for spinners and home textile producers. Spinners experienced an improvement in order intake between September 2022 and January 2023 that did not last. They recorded a deterioration in order intake in March 2023. Home textile producers continued on the same path then the sharp fall registered in January 2023. This segment is on a roller-coaster ride.

During the first phase of the pandemic, which was marked by lockdowns and many restrictions of movements and travelling, many consumers invested in more comfortable homes. In the second phase of the pandemic with the lifting of many restrictions, consumers' spending shifted back towards products and services consumed before the pandemic.

ALCHEMPro News Desk (NB)