German textiles and clothing in October 2015
The German textile sector developed overall in 2015 superior than the clothing sector, reports the umbrella association Textil+Mode. The economic data are satisfactory. The early indicators and particularly the consumer mood is forecasting a conciliatory year’s end. The export activities with Russia remains a problem for both sectors. The job situation remains positive, thus it is to be expected that the two sectors will register in 2015 a gain in turnover of 1.5 %
The development of the past months is continuing, the two sectors note increasing turnovers (+ 1,1 % as of October), thereof textiles are responsible of a marked growth of 2.7 %, whereas clothing turnover declined 1.1 %. The job situation in both sectors is robust, in October employment increased in the textile industry by 2.3 % and in the clothing industry by 1,1 %. The two sectors have increased jobs in the past 10 months by 1.4 %.
In parallel working hours increased in October again, textiles added 2 % and clothing 1.5 %, thus 1.8 % superior to 2014. Domestic production shows differing results, whereas textiles could increase its production volume by 1.6 % in October, the clothing segment recorded a backlash of 6.1 %.
Order intake is also differing between the two sectors. Clothing showed in October an increase of 1,0 % year to year, whereas textiles settled at +2.3 % against 2014. Order log increased continuously during 2015 (+15.2 % in September, +15 % in October as against the previous month), whereas in the clothing sector order log decreased in September by -7.2 % and in October 5.5 %. On the other hand the clothing sector had a high order intake in October, however this had practically nil influence on the order log, thus it was not decisive. The level of capacity load (months) remained nearly stable.
Production prices in the textile sector increased after some months of stagnation. In clothing they were more constant and will be around 1.4 % above the level of 2014.
Textile retail turnover showed signs of recuperation after the sharp decrease in summer 2015. It added 7.0 %. In October and against the same month 2014 it increased 0.9 %. It is to be expected that retail turnover will decline in November and December 2015. Total German retail added in October 20154 2.8 %.
Textile exports added up to October and against the same period in 2014 2,0 %. Textile imports increased by 5.9 %. Exports in clothing dropped 0.8 % as of October, whereas imports increased by 6.7 %. The decline results on the situation of Russia, and considerable increase in volume by other countries, foremost away of the Euro Zone, were not able to compensate the losses in Russia. The imports surplus of the two sectors increases by 16.3 % as against 2014. Raw material imports sank by 3.3 % against 2014.
The actual data of the two sectors are not always positive, but the general economic climate is positive for the two sectors according to Ifo index, both consumer sentiment and expectations are considerably increasing, also for clothing. Since also other indicators, such as order situation lead to a cautious optimism.