Missing signs for a changing trend are not witnessed , therefore the two industry branches are for some month in a downward trend. Some positive figures, such as monthly turnovers or foreign trade are not destined to halt the downward trend.
The continued dissatisfying situation has also marked influence on the job situation, also declining markedly. With other words, Geman textiles and clothing industry is following at large the actual development of the German industry.
The manufacturing industry figures by ifo is not profiting of a small improvement of the German economy.
At the periphery, and after a row of very weak months, turnovers increased slightly, for textiles + 0.4 % and clothing of + 1.7 %. For the entire 2019 and as of September the figures are still negative. The two branches are with 2.1. % below the turnovers of 2018, whereas textiles are -3.2 % and clothing -0.4 %, however starting on a low level.
Occupational rate is up to the end of September negative, textile -4.0 % and clothing -0.5 %. The occupational situation is worsening increasingly, because the average value from January to the end of September shows for both sectors occupational losses of -2.9 %, on average in the ongoing year the value settles at -1.5 %.
Also, domestic production is sinking for textiles and markedly for clothing, this means also that some monthly values are positive, such as textiles for the month of September, there is no change in the downward trend. In the first nine months production sank for textiles by 0.3 % and for clothing -5.1 %.
The order situation is for both segments negative, whereas clothing – after an extraordinary negative August, more order intakes were registered.
The production prices continue to increase slightly, particularly textiles are actually not in a position to demand higher prices, the increase as per September is on the annual average only + 0.9 %. The clothing industry’s value is with + 1.2 % somewhat more favourable.
The turnover situation of specialised retailers is recuperating in the past months, after a unsatisfactorily start of the year. For the actual month of September it is to be noted a plus of 3.3 %, but general retail shows a plus of 3.7 %, profiting better from the consumer sentiment in Germany. Clothing’s development was only +0.1 in the first nine months of the ongoing year.
Textiles are showing a negative development in foreign trade: -2.9 % in exports and -1.8 % on the import side. On the other hand, clothing added 5.0 % in exports and imported +0.6 Thus the trade balance surplus sank per September by -5.2 %.
The raw material import sank in the first nine month of 2019 by 3.7 %.
The ifo economic climate index from November 2019
The climate of the manufacturing industry was not profiting from the hesitant recuperation of the German economy, thus there is a further downward trend in the month of November, however less markedly as in the midst of the ongoing year.
Clothing can withstand the pessimistic news, but the actual very positive values of the month of November are somewhat surprising. Only the coming months will prove if the true values confirm clearly an upward trend towards recuperation. Textiles reflect a somewhat negative mood, amid the very clear negative trends in textiles, and the signs of a trend change are still not in sight.