The global textile business-situation indicator stood at -23 percentage points in the 40th International Textile Manufacturers Federation (ITMF) survey, conducted 21–29 September 2026. The reading marks an improvement from the -46-point trough logged in November 2023, yet remains firmly negative across most regions and value-chain segments.

ITMF framed the data as evidence that uncertainty has become a persistent feature of textile trading conditions, weighing on sourcing decisions and capital deployment across the chain.

Where does demand diverge by region?

Only South Asia, at +13 percentage points, and Africa, at +9 percentage points, posted positive current business conditions. North and Central America recorded the weakest regional reading at -56 percentage points, followed by South America at -44 points and Europe at -36 points.

Which segments are carrying the chain?

Fibre producers were the only value-chain segment to report positive conditions, at +67 percentage points. Spinners sat at -33 points, finishers at -42 points, and textile machinery manufacturers at -35 points. According to the survey, the negative machinery reading reflects companies' continuing reluctance to commit capital expenditure.

What is the outlook for the next six months?

Expectations reached +19 percentage points globally, with fibre producers again leading at +67 points. Africa topped regional expectations at +59 points. East Asia (-20 points) and South-East Asia (-6 points) were the only two regions with a negative outlook. Still, 46% of respondents expected no change, signalling sentiment has yet to translate into broad trading momentum.

How are order intake and backlogs tracking?

Order intake edged up to -24 percentage points but stayed negative. South America registered a record low at -69 points, pointing to weak demand. Order backlogs shortened to 2.3 months, within the 2.0-to-2.5-month band ITMF has logged since mid-2023. ITMF attributed the compressed backlog to manufacturers working primarily against confirmed orders rather than building longer production pipelines.

What pressures are respondents flagging?

Weak demand topped the list of concerns, cited by 56% of respondents. High raw-material prices followed at 42%, with energy costs at 41%. Geopolitical concern eased to 36%, down from 46% in the July survey. ITMF linked renewed inflationary pressure to the war in Iran.

How are suppliers responding to US tariffs?

Responses split across three main strategies:

• 29% said they are diversifying into markets outside the US
• 23% are investing in automation and efficiency measures
• 23% are absorbing higher costs

What is the capacity and inventory picture?

Capacity utilisation climbed to 71%, above the 68% low of November 2023 but below pre-late-2022 readings above 80%.

Order cancellations held at roughly 2% on average, though finishers recorded increases for three surveys in a row.

Inventory levels stayed generally lean, with South-East Asia reporting a record low. The Americas diverged, with relatively high stocks combined with weak incoming orders pointing to a build-up of unsell merchandise.

What does the data force on sourcing teams?

The ITMF survey found that rising costs and inflation could limit the scope for a material near-term recovery. Sourcing teams must judge whether the marginal lift in sentiment translates into confirmed order volumes before committing to capacity expansion, alternative-country qualification or tariff-diversification programmes. Lean South-East Asian inventories and capacity utilisation well below pre-late-2022 norms point to a need for rapid supplier qualification if demand picks up.