Quarterly surveys conducted by SMI-ATI show a strengthening recovery in Italy's textile and apparel industry in 2006.
Though industry sales turnover was only marginally higher in Q1 2006 compared to Q1 2005 this has since grown in Q2 year-on-year and expanded again in Q3 year-on-year.
This growth has been mainly driven by textile production rather than apparel production.
While both textile and apparel production were negative in Q1 2006, textile production began to improve in Q2 and by Q3 growth was noticeable also in apparel production for the first time in 2006.
After 5 years of falls in production, textile and apparel business is expected to show annual growth for the full year 2006.
Menswear production saw a sharp increase in Q3 2006, compared with Q3 2005 after two preceding negative quarters. Womenswear production on the other hand, has continued to be negative.
After some recovery in the knitwear market during the first half of 2006, domestic knitwear orders weakened along with expectations for S/S 2007 orders. Exports are currently driving overall apparel production.
There is a note of caution with current Spring/Summer 2007 orders indicating production growth may be short-lived, althouth survey results could reflect retailer's reluctance to commit to early orders during the current Autumn/Winter season.
Australian Wool Innovation Limited
marketing@alchempro.com
