Global textile business sentiment climbed to -23pp in the 40th ITMF Global Textile Industry Survey (GTIS), well above the November 2023 low of -46pp but still deep in negative territory. The International Textile Manufacturers Federation conducted the survey from 21 to 29 September 2026 and published results on 6 October from its Zürich headquarters.

Conditions remain weak in what ITMF describes as a new normal of high uncertainty. Only two regions posted positive readings: South Asia at +13pp and Africa at +9pp. Europe (-36pp), South America (-44pp) and North & Central America (-56pp) reported the weakest conditions.

Along the value chain, the two ends outperform the middle. Fibre producers are the sole positive segment at +17pp, while spinners (-33pp) and finishers (-42pp) lag. Textile machinery manufacturers sit at -35pp, still suffering from mills' reluctance to commit capital.

What do companies expect for the next six months?

Six-month business expectations improved sharply to +19pp — in stark contrast to the current situation. But 46% of participants expect no change, a signal ITMF reads as optimism resting more on hope than on concrete order signals.

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

How weak are orders and capacity right now?

Order intake edged up to -24pp but remains depressed, and South America has fallen to a record low of -69pp. The global order backlog shortened slightly to 2.3 months, within the 2-to-2.5-month band it has occupied 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 still well below the above-80% levels seen before late 2022. Rising costs and inflation make a significant recovery in the coming months unlikely, ITMF notes.

What is driving the pressure?

Weak demand remains the main concern, cited by 56% of participants. Cost pressures are building, led by high raw material prices (42%) and energy prices (41%), which have pushed inflation up again since the war in Iran. Concern about geopolitics eased to 36%, down from 46% in July.

In response to US tariffs, companies are pursuing three main strategies:

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

Order cancellations remain low at around 2% on average, though they have risen among finishers in three consecutive surveys. Inventories stay lean in most regions, with Southeast Asia at a record low.

The Americas are the exception. There, high inventories combined with weak order intake point to a build-up of unsold stock — a warning sign for buyers sourcing from the region and for US-based suppliers awaiting a demand rebound.

For sourcing managers, the survey forces two decisions: whether to follow the diversification route into South Asia and Africa, where sentiment and expectations are strongest, and whether to lock in capacity now with suppliers running lean inventories and 2.3-month backlogs before any cost-driven price resets arrive.