Some more clouds on the horizon of German clothing and textiles

Textil-Mode, the umbrella organisation of the two sectors reports that actually there are only a few positive signals in view to the economic situation. Truly, the clothing sector is producing some good figures in turnover and occupation, however on low levels and with low inland consumption. The textile sector has clouded even more, conditioned by the high dependence on the manufacturing industry. The ifo-figures are accordingly not only contracting in the manufacturing industry but following also in the clothing and particularly textiles. At short sight, there is no remedy, because the forecast for the industry is negative as never since 2009.

Turnover in the textile sector is further falling, also in May 2019 with -0.3 % and shows in the ongoing year with -2.1 % lower turnover markedly below the same period in 2018. With the exception of hosiery and knitting and Technical Textiles all other sub segments are negative. The clothing sector added 3.2 % and is 2.6 % above the level of 2018. The two sectors report 0.4 % less turnover as in 2018.

Occupational aspects show the same pattern as in the previous months and proceeds: At the end of May the textile sector reported 1.8 % less people than in 2018, whereas the clothing sector added 1.4 % more people. Following the two sectors had 0.8 % people on jobs.

The local production sank in both segments, as per May for textiles – 1.4 % and clothing -0.2 %.

The trend of the order situation is for both sectors negative. The clothing sector could maintain higher incoming order of the past months.  Orders on log are as to compare with 2018 negative, whereas the clothing sector was positive.

Producer prices show a continuous slight uptrend, however more than 2018. For textiles results for the past five months a plus of 0.9 % and for clothing 1.1 %.

Proceeds in the specialised retail sector continues its downward trend, in May resulted a minus of 3.8 % against 2018. Thus in May resulted a backlash of proceeds of 2.1 %, as compared to the same period of 2018. The total German retail sector was positive and added 3.7 % against 2018. Exports are supporting the clothing sector, whereas domestic consumption is neglecting clothing.

The textile sector is responsible for a negative figure in exports, in May -3.0 %. Clothing shows a plus of 0.3 % and is more or less at the level of 2018. Imports from the two segments were negative in May, textiles showed a drawback of 2.6 % and clothing -3.1 %.

The import plus dropped by 3.0 %. Raw material imports are in May also negative with -0.8 %.

Ifo economic index of July 2019

The economic trend for the entire German manufacturing industry dropped markedly on the lowest level of around a decade. Also textile and clothing cannot withstand this trend. Both indices lose grounds. For the manufacturing industry is no improvement in sight, in contrast the early indicators for the months ahead shows a further drop. Experts fear that foremost the textile segment could feel the negative heat.