German textiles with moderate growth in May and clothing sector is slightly improving
According to the German umbrella association Textil+Mode, in May order intake and turnover in the German textile industry was positive. The clothing industry shows in the second consecutive month an increase in turnover (+2.4 %), however a decrease of 3.6 % against May 2015
Turnover of the two segments increased for the two segments from January to Mai by 1.8 % as against the same period of 2015. The growth was mainly due to textiles (+5.3 %), whereas clothing lost 3.6 % year on year.
Order intake over five months was for both segments together with 3.5 % negative, however with a positive trend for the last three months. Textiles show an increase over five months of 1.9 %. In the clothing sector the order log increases in May for the clothing sector by 15.7 % (April +12.6 %), and textiles improved by 6.3 %. This means that textiles has a worklist covering 1.9 months and clothing of 3.6 months.
The labour situation shows that the textile industry’s numbers of employed persons increases in May by 2.0 % and in the clothing sector it decreases by 2.5 %. However both segments together employ more people (+0.5 %) on a year on year basis. Working hours increase in May 4.7 % resulting that the value is 2.2 % higher (textiles + 3.9 % and clothing -1.0 %) than for the same time in 2015.
Production prices was clearly stable (+/- 0.0 % in the first five months) for textiles, however in clothing the price levels increased since a few months (around 1.5 %).
Domestic production figures differentiate, whereas textile production increased in the first five months by 2.1 %, clothing production decreased by 2.6 %. The latter value shows also large fluctuations.
Turnover in clothing retail has been at the turn of the year negative (-1.0 % per May), however in May it trended up by 0.6 %. Total German retail added 2.3 % and this on rather constant price levels, whereas clothing retailers could increase prices by 0.6 %.
External trade shows a steady positive trend. Exports increased in May on year to year basis: textiles by 1.2 % and clothing by 1.7 %. The import surplus of both segments increases also by 1.4 % against the same period in 2015.
Raw Material imports increased in May by 0.3 %.
The ifo figures show that the estimates of textile enterprises seem to stagnate or even decrease, however the high level of the estimates should not create doubt. Even estimates in the clothing industry, despite of the difficult economic situation are slightly positive.