Global Textile Firms Reported Continued Business Weakness
Manufacturers face persistent demand challenges and cost pressures that may weigh on future production and pricing.
Updated on Oct. 6, 2026 in Economic Indicators
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The International Textile Manufacturers Federation reported that global business conditions remain at negative 23 percentage points as of late September. This lingering strain on the sector follows a record low of negative 46 percentage points recorded in November 2023.
Why it matters
Higher costs for energy and raw materials, driven by conflict in Iran, continue to suppress industry growth and put upward pressure on prices. For consumers, these structural inefficiencies may limit potential price relief on textiles in the near term.
Global business sentiment holds at -23 percentage points, while capacity utilization remains at 71 percent. With 56 percent of firms citing weak demand, the sector continues to face significant headwinds.
The players
International Textile Manufacturers Federation
An international trade organization that tracks manufacturing data and provides economic analysis for the global textile supply chain.
The details
Companies are responding to ongoing challenges by investing in automation to manage high operating expenses and diversifying into non-U.S. markets to mitigate the impact of tariffs. Despite these efforts, persistent inflation suggests that a broad recovery is unlikely in the coming months as firms grapple with a 2 percent average order cancellation rate.
Timeline
November 2023 saw the business situation index reach a record low.
The 40th global industry survey was conducted from September 21 to September 29, 2026.
Survey results were officially published on October 6, 2026.
Business expectations are being tracked for the next six months.
Money Landscape
The industry currently shows moderate improvement compared to the significant downturn seen in the November 2023 Global Textile Industry Survey. However, current conditions remain contractionary as geopolitical tensions and cost inflation persist.
Consumers should be aware that high production costs and weak demand may lead to inconsistent pricing for textile goods. If you are planning major household purchases in this category, discuss the potential for price volatility with a qualified financial advisor.
The takeaway
While the textile sector has moved above its previous record lows, cost inflation and weak demand remain persistent risks. Monitor energy and raw material cost reports as these indicators often precede retail pricing shifts in textile goods.
Further reading
For more information on how global manufacturing trends affect consumer prices, visit our Economic Indicators section.
More information
To review the full survey methodology and findings, visit the International Textile Manufacturers Federation website.
Source note: This article includes information reported by Textile World.
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