ITMF survey: global textile demand still weak, but Africa leads an improving outlook

Conditions in the global textile industry are improving slowly but remain weak, according to the 40th Global Textile Industry Survey of the International Textile Manufacturers Federation (ITMF), conducted from 21 to 29 September 2026 and reported by Just Style on 7 October.

The survey's global business-situation indicator stood at -23 percentage points, up from a record low of -46 in November 2023. Order intake remained negative at -24 points, order backlogs shortened slightly to 2.3 months, and average capacity utilisation rose to 71%, still well below the more than 80% seen before late 2022. ITMF said uncertainty has become a persistent feature of trading conditions.

By region, only South Asia (+13) and Africa (+9) reported positive current conditions, while North and Central America (-56), South America (-44) and Europe (-36) were weakest. Expectations for the next six months turned more positive globally (+19), with Africa the most optimistic region at +59. Along the value chain, fibre producers were the only positive segment, while spinners (-33) and finishers (-42) remained under pressure.

Weak demand was the top concern for 56% of respondents, followed by high raw-material prices (42%) and energy costs (41%); the survey linked renewed inflationary pressure to the war in Iran. Asked how they are responding to US tariffs, 29% of companies said they are diversifying into markets outside the US, 23% are investing in automation and efficiency and 23% are absorbing higher costs.

What it means for Egyptian exporters

Africa's position as the most optimistic region is an encouraging signal for North African producers, including Egypt, which is drawing new spinning and garment investment. At the same time, weak order intake in Europe and the Americas means competition for every order will stay intense. The finding that almost a third of manufacturers are diversifying away from the US suggests more rivals will be chasing EU buyers, so Egyptian exporters should lean on proximity, speed and traceable Egyptian cotton to stand out.