Most economic indicators of the sectors are negative or do not show a clear tendency. The sector clothing is more deceiving than textiles. However, the indices of order intake and the ifo economic climate index leaves hope for a more optimistic development in the second half of 2018.
Turnover of the actual month of May is for both segments negative (textiles – 5.6 % and clothing -9.4 %). Despite the positive pre-month total annual proceeds are 1.1 % down thus again negative whereas textiles defend themselves with a slight plus of 0.5 %, whereas clothing is 3.6 % below the level for last year. It is noteworthy that the lowest value for clothing depends on the changed structural statistics.
Also the occupational situation of the two segments is in the first three months of 2018 slightly below the figures of a year ago (-0.2 %). Un uptrend can be noted for textiles (+ 1.4 % in May), whereas clothing showed as per May -3.3 %.
Total delivered working hours decrease in May by totally -2.2 % against the same period of 2017 and for both sectors: textiles -4.1 % and clothing -5.2 %
Domestic production decreases in May for textiles by 4.1 %, on the other hand increases this value in clothing – against lower other values – in the past two months markedly with 1.3 %.
The indicators for order intakes are slightly increasing, but not for the clothing segment that ends up below the values of 2017.
Producer prices increase also slightly but in both segments constantly. Textiles are registering as of May a plus of 1.3 %, for clothing results a plus of 0.6 %.
Proceeds of specialty retailers are so far constantly positive, in May however the value decreased by 2.9%. As to compare with the same period 2017 the value per May is with +1.3 % still positive. Turnover increases of the total German retail sector showed for the same period of time a plus of 2.5 %.
Foreign trade, namely exports of clothing per May increased by +9.3 %, whereas textiles registered a low month of May thus a slight decline of 0.2 %. Imports are still on the downward direction, per May -2.3 %.
The trade surplus lays 18.9 % below the value of the same period in 2017.
Raw Material imports sank markedly by 11.6 % per May.
The ifo economic climate index July 2018
The general climate index of the process industry shows in 2018 a continued downward trend. In general, the forecast claims a declining German economy in 2018, affecting to some extend also the two sectors textiles and clothing. Against the higher volatility, the two sectors were withstanding and particularly in July 2018. Under the aspect of the unclear foreign trade development, the ifo index still offers hope for the second half of 2018.