German textile and clothing sector in January 2016
According to the German umbrella organisation textil+mode the textile sector reports a satisfactory situation, however clothing is still lacking in respect of turnover and employment situation, but as well regarding orders, production numbers and retail. The discrepancy between the two sectors seems to persist, however the sentiment index shows that both type of enterprises estimate rather precautionary results for the coming months
The proceeds for January 2016 is divided, whereas the year started for the textile segment with a plus of 1.7 %, and on a annual basis. However, turnover for clothing suffered a marked decline of 6.0 %, thus proceeds for both sectors show -1.7 %.
The employment situation reflects this situation, the textile sectors records a plus of 1.6 %, whereas the clothing sector suffers a drawback of 1.8 %. Labour hours in January increased slightly (+0.4 %) for textiles, but sink by 2.8 % in the clothing sector, with the result that on a year to year comparison both sectors were negative (-0.7 %).
Domestic production is suffering in January a back draw for both sectors: textiles record a minus of 1.5 %, and clothing minus 8.2 %.
The order intake reflects the diverging development of the two segments clearly: Order intake in textiles was positive over the past three months and presently with 5.7 % respectively 1.1 %. The clothing segment shows a backlash for January of 2.3 %, as in December 2015 (-6.3 %). This is affecting the order log, while textiles show in January a plus of 17.9 %, whereas clothing shows a reduction of 2.8 %.
Production prices remain stable for the textile sector, for the clothing industry results in January an increase by 1.5 % on an annual basis.
Retail turnover is actually slightly declining (-0.1 %). Total German retailing could not hold on the slight growth rates of the past months and loses in January 0.9 % on an annual basis.
Foreign trade started with a negative result into 2016. Exports were declining in both sectors, including preproduction, thus totally resulted a reduction of 3.0 % in comparison to January 2015. Trade surplus of both segments increased by 0.5 %, and on a year to year basis.
Raw material imports sank by 9.0 %, and on a year to year basis.
The total index for the German manufacturing sector was slightly lower. The situation of the textile and clothing industry reflects the difficulties of the beginning of 2016 in the sentiment index. Noteworthy is the actual discrepancy between the actual assessment and the estimates of the future for both sectors. The short time prognosis are rather indicating a decline.