ITMF Survey Results Show Textile Industry Slowdown Amid Global Tensions

The latest ITMF survey results from the 37th Global Textile Industry Survey (GTIS), conducted in March 2026 by the International Textile Manufacturers Federation, indicate a clear deterioration in the global textile business environment. Escalating geopolitical tensions—particularly the conflict involving the United States, Israel, and Iran—have significantly disrupted energy markets and triggered widespread uncertainty across textile value chains.

According to the ITMF survey results, the global business situation balance dropped sharply to -25 percentage points, reflecting weakening sentiment across most regions. Africa emerged as the only region reporting a positive business climate, supported by relatively stable demand and growing regional manufacturing activity. In contrast, North and Central America experienced the steepest decline, underscoring the vulnerability of demand-driven markets to global shocks.

At a segment level, garment manufacturers showed relative resilience, benefiting from ongoing retail demand and shorter production cycles. Meanwhile, textile machinery producers continued to report deeply negative conditions, indicating reduced capital expenditure and delayed investments across the industry.

The ITMF survey results further reveal a sharp decline in business expectations, with the global expectations balance falling from over +23 percentage points to just +5 percentage points—the lowest level since late 2022. This drop reflects mounting fears of stagflation, echoing the economic pressures seen following the Russian invasion of Ukraine, when energy prices and inflation surged globally.

Regionally, South America displayed the highest level of optimism, while South-East Asia reported the most pessimistic outlook, largely due to export dependency and sensitivity to global demand fluctuations. Among industry segments, brands and retailers remained the most optimistic, whereas weavers and knitters continued to face significant headwinds due to cost pressures and subdued order volumes.

A notable shift highlighted in the ITMF survey results is the rise of geopolitics as the industry’s primary concern. For the first time, 50% of respondents identified geopolitical instability as the top risk, slightly surpassing weak demand at 49%. This shift is largely driven by the ongoing tensions in Iran, which have contributed to rising energy prices, increased raw material costs, and logistical disruptions—particularly around the strategically critical Strait of Hormuz, through which a significant portion of global oil shipments passes.

In response to these challenges, textile companies are increasingly prioritizing market diversification strategies, reducing reliance on traditional markets such as the United States. Many firms are also absorbing higher costs internally to remain competitive, rather than passing them on to consumers in an already fragile demand environment. However, large-scale structural changes—such as production relocation or major capital investments—remain limited due to ongoing uncertainty.

Adding further context, global trade data from organizations like the World Trade Organization suggests that merchandise trade growth is expected to remain subdued in 2026, reinforcing the cautious outlook captured in the ITMF survey results. Additionally, persistently high energy costs continue to pressure manufacturing sectors worldwide, particularly energy-intensive industries such as textiles.

In summary, the latest ITMF survey results paint a picture of an industry navigating through heightened geopolitical risk, softening demand, and rising cost pressures. While some regions and segments show pockets of resilience, the overall outlook remains fragile as companies adapt to an increasingly complex global landscape.