German textiles are robust in contrast to clothing
The diverging development between German textiles and clothing is continued in March 2016.It is the third quarter with a clear indication that the economic indicators in clothing are negative, but the textile segment develops sustainably particularly in Technical Textiles and confectioned textiles. According to textile+mode, the German textile umbrella Association, there are no hints to an improving clothing sector, also because there are no impulses on the export and retail front
Exports to Russia are also declining in the first quarter of 2016 and important increases to other foreign markets are missing. Only the sentiment index and orders on log are nurturing the hope for a change in the clothing sector.
Development of total turnover is slightly negative with -0.3 % for the first quarter on a year-to-year basis. While the textile sector shows an increase of 4.2 % in the first three months of 2016, clothing is dropping -6.3 %, and alone in March the sector declines 9.3 %.
The occupational side of the business reflects these developments, while the number of employees in the textile industry is increasing in March by 1.9 %, the one in the clothing industry is decreasing by 2.5 %, however in total the situation remains relatively robust at the end of March results an increase in both sectors of 0.4 % on a year to year basis. It has to be noted that occupation is a following indicator, thus in the months ahead there might be less employees in the clothing sector on the basis of declining turnovers.
The effected working hours increased at the end of March by 1 % as against 2015. The working ours increased in the textile sector in the first three month by 2.4 %, but declined in clothing by 1.7 %.
Domestic production was withdrawing speed not only in the clothing sector (-9.5 %), but also in textiles (-2.6 %), this leads in the first three months to a slight increase of 0.6 % in textiles and -6.9 % in the clothing sector.
The order situation reflects the diverging development of the two sectors, whereas the textile sector increased 1.4 % in the first quarter 2016, the clothing sector reports less orders (-6.1 %). Order logs in the clothing sector inched up 8.0 % in March against the same month in 2015 and in the textile sector by 8.1 %. The stock of orders in March is reaching out for 2 months in textiles and 3.5 months in clothing.
Production prices are rather stable (-0.1 % for the first quarter 2016), the clothing sector uptrend lays around 1.5 % for various months.
Retailing is decreasing since the beginning of 2016, and March was markedly declining by 5.1 %, thus for the first quarter is resulting -2.0 %.
No healing for exports, the drawback in textiles in the first quarter 2016 is -0.9 %, and in clothing – 1.2 %. Also imports of the two segments are sinking by 0.6 %, and the trade surplus of both segments is decreasing by 0.7 % in March on a year-to-year basis.
Raw material imports decline by 4.9 % against 2015.