Rather pessimistic outlook for German textiles and clothing

Rather pessimistic outlook for German textiles and clothing

According to German Gesamtverband Textil+Mode the umbrella organisation for the two industries and ifo-Konjunkturtest the outlook for German textiles and clothing manufacturers is actually rather pessimistic

On the other hand, the umbrella association indicates that order intake is rather steady so far but the insecurity of the future German economic growth is high.

By taking the first four months of the ongoing year as a basis the German two sectors of industry show only dampened optimism for the entire year.

The turnover of the two sectors in April increased 1.1 % in comparison with April 2011 thereof clothing reports a growth rate of 3.2 % whereas textiles decreased by 0.5 %. If one compares the figures against the March 2012 then the turnover figures are declining and stagnant over several previous months. However estimates show that turnover will increase by around 3 % to a total of EUR 29 billion for the entire 2012, mostly because of a relatively high value at the beginning of the year. The employment rate increased in Technical Textiles and in clothing but lesser in the so called classical textile sectors. In April, textile employment increase by two percent and clothing by four percent against April 2011. On average the domestic employment in the two sectors increased by 2.7 % and total employment amounted to 121000 persons.

Production decreased in the first four months, namely the textile output decreased by 6.6 % and clothing (a strong structural component) by 4.7 %.

Order intake sank in textiles by 6 % and in clothing by 1.4 % in April. On the other hand production prices increased in textiles by 2.8 % and in clothing by 2.7 % in April.

Retail turnover fell also, in April for the two sectors by 0.3 % and there are indications that these trends will continue in May and June. Retail price levels in clothing increased in April by 2.4 % and above the general price level in the German retail sector.

Textile exports and imports were 2.6 %, respectively 7.5 % lower in April and exports in clothing sank by 3.5 % and imports b 4.8 %. The import surplus is 14 % lower and raw material imports fell by 16.3 %, but will not continue to fall due to higher global demand especially for chemical fibres and also the lower EUR exchange rates are demanding its tribute.


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