Global textile business sentiment stood at -23 percentage points in September 2026, up from the record low of -46 points in November 2023 but still deep in negative territory, according to the 40th Global Textile Industry Survey (GTIS) published by the International Textile Manufacturers Federation (ITMF). The survey ran from 21 to 29 September 2026 and covered firms across the textile value chain worldwide.

The headline figure masks sharp regional divergence. South Asia (+13 points) and Africa (+9 points) are the only regions reporting positive current conditions. Europe sits at -36 points, South America at -44 points, and North and Central America at -56 points — the weakest reading of any region.

Where does the pressure sit in the value chain?

Fibre producers are the sole segment in positive territory, at +17 points. Spinning mills (-33 points), textile machinery manufacturers (-35 points) and textile finishers (-42 points) all remain under significant strain. Machinery makers in particular continue to suffer as downstream companies postpone capital expenditure.

Expectations for the next six months improved to +19 points globally, but the ITMF cautions against reading this as a recovery signal: 46% of respondents anticipate no change in their business conditions at all.

How are orders and backlogs tracking?

Global order intake improved marginally to -24 points but remains weak. South America recorded a particularly sharp deterioration, with orders falling to a record low of -69 points.

The global order backlog declined slightly to 2.3 months, staying within the narrow two-to-2.5-month band observed since mid-2023. According to ITMF, most companies continue to operate against confirmed orders rather than building inventory in anticipation of stronger demand — a make-to-order posture that limits upside for fabric and yarn suppliers until buying improves.

Order cancellations remain low, averaging around 2%, although textile finishers have reported increases in three consecutive surveys — an early warning signal for the wet-processing tier specifically.

What is happening to capacity and inventories?

Capacity utilisation rose to 71%, against the November 2023 low of 68%, but remains well below the above-80% levels recorded before late 2022. The gap points to persistent structural underuse of manufacturing capacity.

Inventory positions diverge sharply by region:

• Southeast Asia recorded a historic low in inventory levels.
• The Americas show the opposite pattern: elevated inventories combined with weak order intake, suggesting an accumulation of unsold stock.

Weak demand remains the industry's principal concern, cited by 56% of respondents. Cost pressures are intensifying in parallel, with 42% identifying high raw material prices and 41% citing energy costs. The survey links renewed inflationary pressure to the war in Iran. Concern about geopolitical developments eased, falling to 36% from 46% in the July survey.

How are firms responding to US tariffs?

Tariff exposure is now visibly reshaping sourcing and investment decisions, the survey indicates:

• 29% of companies are diversifying into markets outside the United States.
• 23% are investing in automation and efficiency improvements.
• 23% are absorbing the additional costs rather than passing them on to customers.

For buyers, the diversification figure implies continued growth in non-US order flows to suppliers in regions such as Africa and South Asia — the two regions ITMF identifies as both currently positive and, in Africa's case, the most optimistic worldwide, with six-month expectations of +59 points. East Asia (-20 points) and Southeast Asia (-6 points) remain pessimistic on the outlook. Fibre producers are the most confident segment on expectations, at +67 points.

What decision does this force?

The survey data points to a sourcing environment where confirmed-order discipline still governs production planning. Buyers sourcing from the Americas face suppliers carrying unsold stock, while Southeast Asian suppliers operate at historic inventory lows — a combination that affects negotiating leverage differently by region.

For suppliers and buyers alike, the compliance-relevant takeaway is that recovery conditions have not yet materialised. ITMF's findings indicate that weak demand, cautious investment and persistent cost pressures continue to shape a prolonged period of uncertainty for manufacturers throughout the textile supply chain. Procurement teams should plan around lean backlogs, low cancellation tolerance at the finishing tier, and a growing share of peers re-routing volume away from the US market.