The 40th ITMF Global Textile Industry Survey, conducted from 21 to 29 September 2026, puts the global textile business situation at -23pp, a slight improvement but still deeply negative, and well above the November 2023 low of -46pp.

Published on 6 October from Zürich, the survey of the International Textile Manufacturers Federation (ITMF) shows an industry operating in what it calls a new normal of high uncertainty. Only two regions post positive readings: South Asia at +13pp and Africa at +9pp. Europe (-36pp), South America (-44pp) and North & Central America (-56pp) report the weakest conditions.

Along the value chain, the two ends outperform the middle. Fibre producers, at +17pp, are the only positive segment. Spinners (-33pp) and finishers (-42pp) lag furthest. Textile machinery manufacturers sit at -35pp, still squeezed by companies' reluctance to invest.

What do expectations say about the next six months?

Business expectations for the next six months improved to +19pp, a sharp contrast with the current situation. The optimism looks fragile, though: 46% of participants expect no change, which the survey reads as hope resting more on sentiment than concrete signals.

Regionally, Africa is by far the most confident at +59pp. East Asia (-20pp) and Southeast Asia (-6pp) remain pessimistic. Fibre producers (+67pp) are the most confident segment along the chain.

Are orders and capacity recovering?

Order intake edged up to -24pp but remains weak overall. South America has fallen to a record low of -69pp. Rising costs and inflation make a significant recovery in the coming months unlikely, according to the survey.

The global order backlog shortened slightly to 2.3 months, within the 2-to-2.5-month band it has held since mid-2023, as most companies work on confirmed orders only. Capacity utilisation rose to 71% — above the November 2023 record low of 68%, but well below the levels above 80% seen before late 2022.

Order cancellations remain low at around 2% on average, though they have risen among finishers in three consecutive surveys — a signal buyers and suppliers should watch at the finishing stage of the chain.

Where are the pressure points?

Weak demand remains the top concern, cited by 56% of participants. Cost pressure is building: high raw material prices concern 42% and energy prices 41%, with inflation pushed up again since the war in Iran. Geopolitical worries have eased to 36%, from 46% in July.

Inventories stay lean in most regions, with Southeast Asia at a record low. The Americas are the exception: high inventories combined with weak order intake point to a build-up of unsold stock there.

How are companies answering US tariffs?

Responses to US tariffs concentrate on three moves:

• diversifying into non-US markets (29%);
• investing in automation and efficiency (23%);
• absorbing the higher costs (23%).

For sourcing teams, the data points to persistent price and margin pressure through the value chain's middle tiers, regional divergence between South Asia and Africa on the one hand and the Americas on the other, and limited spare capacity — all factors pointing to continued caution on lead times and order commitments heading into 2027.

Details are available at www.itmf.org.