German textiles and clothing with a summer downbeat
The situation in the second half of 2016 was with negative impact, in both segments and the same goes for most of the indicators, reports Textile+Mode, the German textile and clothing umbrella federation
Textiles showed a certain robustness in the first half year of 2016 but has now to register a downbeat in turnover. Clothing showed weaknesses and is decreasing additionally. The same is true for exports and retailing. Also early indicators such as order log and ifo data are not very promising. The ifo-index shows a surprising robustness in the framework data, but the expectations of enterprises are rather pessimistic, this in contrast with the future estimates of enterprises of the total German manufacturing industry.
Turnover in July are decreasing markedly in comparison year to year, and particularly the clothing segment shows a figure of -11.7 %, but also the textile segment decreased by 6.1 %. In the first seven months turnover in textiles shows a plus of 3.5 % against 2015, in clothing the figure decreased by 5.0 % leading to the fact that the total turnover growth per July is a meagre 0.1 %. Practically all sub-segments were affected, including the ones that were good for stability in the past, namely Technical Textiles or work- and professional wear.
The number of labour in the textile industry was positive with 2.4 % growth in July, and 2.1 % in the first seven months, however in the clothing industry the number of labour is sinking steadily, -2.9 % in July and – 2.6 % per July. On the other hand in the sector are still 0.5 % more people employed as in 2015. Per end of July the value is 1.5 % above against the previous year, for the textile industry results a plus of 3.2 %, whereas in clothing the back-draw was 1.9 %.
Domestic production sank in July markedly in both sectors, in textiles -5.4 % and in clothing – 15.5 %. The production value of 2016 per July for textiles shows a growth rate of 2.0 %, whereas for clothing the decrease is 0.6 % as against 2015. It has to be noted that the value for the clothing sector varies considerably during the year.
Also in the ordering the situation is darkening and therefore also for the months ahead. For textiles the value was positive but decreasing in July. Order intake dropped in July by 6.0 % and order log registered an increase of 4.4 % after +6.0 % in June, thus markedly lesser than before.
For the clothing segment resulted -12.7 % in order intake in July, respectively + 13.8 % after + 117.3 % in June for order log. Capacity load is steady, the increase in clothing reaches 3.5 months after 3.8 % in June.
Production prices in the textile sector remain stable (-0.1 % in the first seven months), for clothing the increase is since some months steady around +1.5 %. Turnover in clothing retailing was negative in the first half of 2016 and markedly decreases anew in July by 3.2 %. Total German retail suffers also a decrease of 1.1 % in July, but added per July +2.1 %.
External trade developed well. But also this figure was decreasing in July 2016 in both segments. Exports per July however increased in comparison to 2015, for textiles resulted a +1.1 % and clothing +0.1 %. Imports during the first seven months decreased, in textiles -0.5 % and in clothing -0.1 %, totally -0.2 %. Trade surplus of both segments showed a downbeat of -1.6 % against 2015. Raw material imports increased in July by 0.7 %. Ifo-data regarding the actual business continue to be stable, but for textiles at a lower level as in April. This fact might be surprising in view to the contracting economic figures. On the other hand the estimates of enterprises in the two sectors seems more and more pessimistic. The total index of the German manufacturing industry is increasing due to positive estimates of its enterprises.