As feared, the economic feable conditions continued also in August, particularly in the textile, but also in the clothing industry, both show worsening figures. The key figures such as turnover and occupation have turned into the minus. Specialised retailers cannot profit of the generally good consumer mood and the Ifo-index is not encouraging. The clothing segment could not profit of the positive situation of the first few months of the ongoing year, only exports are increasing actually. The forecast of clothing enterprises are better than the one of their colleagues of the textile sector.
Also the focused month of August shows marked retracting turnovers. Only in this month textile showed a decrease of -5.8 %, and clothing -5.2 % less turnover than the previous month. After eight months the textile sector is -3.6 % against the previous year, and the cumulated turnover for clothing is now with 0.7 % negative. The two sectors show an decrease -2.5 %.
Also the situation in view to occupation is turning negative: The figures for the end of August are 4.2 % for textiles and -0.3 % for clothing. That the occupation is apprehensively clouding and can be seen that the average values from January to August were in both segments better. The two sectors show at the end of August 2019 -2.9 less persons occupied, and the average in the eight months was -1.4 %.
Also the domestic production has a sinking tendency for textiles and clothing. Even if one considers that this value is volatile, it fits well in the decreasing figures. The in the previous month showed statistical extreme has been corrected in the framework of the monthly revision. The order situation is for both segments negative, particularly order intake shows the negative tendency.
Production prices are slightly up-trending, however textiles are not in a position to force higher prices, the average price increase up to August shows only +0.9 %, slightly better is the clothing sector with an average of +1.2 increase, however with a slightly increasing tendency.
The turnover in the specialised retailing sector shows for several months a slightly better trend, but far behind the generally good consumer sentiment and the increasing positive development of Germany’s total retail sector per August is settling +3.7 % turnover. Contrary the clothing sector shows per August an increase by 1.4 %, however the first eight months show a slight minus by 0.3 %.
In view to foreign trade, textiles develop worse than clothing: export figures and imports show decreasing results -3.2 % respectively -2.3 % per August. Clothing increased in August exports +3.5 %. The imports were unchanged in the clothing sector per August. The import plus decreases as of August by -4.5 %.
The import of raw materials decreases in the first eight months by -4.2 %.
The ifo economic climate index in October 2019
The climate of the processing industry takes an interval after the steady negative development oft he past month and is slightly recuperating. Clothing has been opposed to the pessimistic general conditions and defended its position, whereas textiles after marked decreases for several months shows in October a positive correction, nevertheless the sentiment in the textile sector is as bad as never over the past years.