Stagnation in October 2018 for German textiles and solidified downturn for clothing

The two sectors cannot set-off the general backlash of economic figures. Clothing is in a crisis and there seems to be no change at the end of 2018. Textiles are stagnating, but important segments such as Technical Textiles are shrinking. The ifo-Index for the total German economy is sinking in December, and also the forecast for clothing is particularly cloudy, whereas for textiles the estimates of the companies are slightly better.

Proceeds of October 2018 are recovering after the distinct drawbacks of former months, but these settle for the entire 2018 still 1.5 % below 2017. Textiles almost reach the 2017 level with a plus of 0.3 %, on the other hand clothing is with -4.3 % in October clearly negative. This will not change in the remaining two months of 2018, thus for both sectors will result a backlash of turnovers for 2018.

Job occupation is following the turnover figures. Totally there are in the two sectors 0.5 % less persons employed as to the average in 2017, clothing has seen a minus of 4.0 %&, whereas textile enterprises employ 1.2 % more people.

The working hours decrease in total – 1.0 % against the same period of 2017. Textiles have increased the working hours by 0.8 %, whereas clothing working hours dropped by 4.7 %.

Domestic production is decreasing for quite some time, for textiles results in October – 3.4 % and clothing by -2.7 %. Particularly less working hours are registered in the third quarter of 2018.

Order intake are slightly positive in October after a row of negative months, but clothing reports a questionable, including order intake.

Production prices increased slightly, for textiles by 0.9 % and clothing 0.7 %.

Proceeds in special retail was during summertime very unsatisfactory, however in October there was a slight relaxation, but under average, thus resulted a backlash. Per October proceeds of the clothing retail contracted 1.3 % below the 2017 level. Total German retail volume increased by 3.1 %.

Foreign trade shows that total exports in October increased by 5.6 %, mainly as a result of the increasing seasonal clothing exports (+8.9 %). Textiles level with +0.4 % almost with 2017. Textile imports sank as of October by 0.8 %, clothing imports increased by 1.6 %. Total imports increased over the past first 10 month by 1.0 % against the same period of 2017.

The import surplus is 8.8 % lower than 2017.

Raw Material imports sank in October by 7.0 % despite increasing raw material prices.

Ifo economic climate index December 2018

The economic trends for the total manufacturing sector decreases again in December. Clothing shows marked fluctuations, however a downtrend remains evident. Textiles present slightly better results, but these still are far from the levels at the beginning of 2018. It remains uncertain if textiles can prevail from the generally decreasing economic trend, because the sector of Technical Textiles indicates further negative signals. In addition, the forecast for the total German economy shows negative signals such as the trade crisis and increasing raw material prices.