German Textile and Clothing show retracting trends

The two sectors show less dynamics as per mid-year. Key figures in the textile sector are non-satisfying, but still above the values of 2017, the data for the clothing sector is retracting broadly. The ifo-economic data are showing additionally, that the entire producing sector shows that the expectations are markedly lower. There is still the hope for a changing trend in autumn, but the general economic risks, such as foreign trade or raw material prices are weighting heavily.

Proceeds are continuing to retract, more accentuated in the clothing sector than in the sector of textiles. In August 2018 textiles are losing 0.9 % as against July, the clothing sector drops by 9.2 %, thus the two sectors are from January to August 1.2 % below the same period of 20p17. Clothing is laying 3.8 % behind, whereas textiles register a slight plus of 0.4 % as against the previous framework. For the two segments the development of proceeds remains negative.

Job occupancy is following the trend of turnovers: Textiles add +1.3 % in August, a trend that can only continue on a steady development. Clothing lost 3.8 % persons on average in the past eight months.

Working hours sank in August by totally 1.4 % against 2017. Textiles are slightly positive with +0.4 %, whereas the clothing segment reports 5.0 % less effective working hours.

Domestic production sank in both sectors, textiles per August by 3.3 % and clothing -3.0 %.

Order intake reflects perfectly the differentiating situation between textiles and clothing: In the past months, order intake increased steadily in textiles, in August +0.1 % above July, clothing had 13.1 % less order intake.

Production prices increased slightly, but in both sectors constantly. Textiles reported per August +0.9 % and clothing +0.7 %.

Proceeds of specialist retailers developed positively at the turn of the year, however always below the level of the German retailers. In the summer month turnover of clothing retailers diminished and are now with -1.1 % markedly below 2017. German retail  has increased proceeds by 3.1 % above 2017.

Foreign trade reports an increase of exports in August by 6.3 %, whereby marked increases resulted in the clothing sector (+10.1 %), whereas textiles increased in August only by 0.6 %. Imports are practically unchanged (in August + 0.4 %). The import surplus settles at -11.6 % below the same period of 2017.

Raw material imports sank in August by 9.4 %.

Ifo economic climate index October 2018

The indication of a cooling economic climate continues in October. The producing sectors show declining  values in October. Textiles and clothing show a more volatile development, but reflecting the same tendencies: Deriving from the high values at the turn of 2018, the firms of these two sectors become more pessimistic. The values from the ifo economic barometer is congruent with the sinking forecasts of the economic research institutes for the actual year and 2019. Because of the development of the entire German economy and the long summer months, a turnaround situation is slightly realistic.