Weak September for German textiles and clothing Industry
According to the German umbrella trade organisation textile+mode, the newest September data shows a slight decrease of the so far good textile data. The clothing industry shows a tight situation and this was accented in September. For all of 2016 the goal of an increase in turnover of 1.5 % will become rather obsolete
On the other hand, the occupation rate remains stable, but the build-up of the two branches is only based on the textile segment. The ifo-index shows a suprising robustness, however the estimates of the industries are less optimistic than the entire manufacturing sector.
Turnover development in September lacks behind estimates, this also goes for the entire year. The two sectors are further divided, whereas the clothing sector is decreasing in September decidedly (-10.7 %), turnover in the textile sector is increasing slightly by 0.7 %. For the first nine months of 2016 remains a minimal increase of 0.4 %, but textiles could add in September 3.9 %, whereas the clothing sector lost 4.8 %.
Occupational rates are still positive but with differences: The textile sector offers 2.2 % more persons an occupation as against 2015, but the clothing industry job offering decreased by 2.4 % in September. However in total, the two sectors show 0.6 % more employment than in 2015. For 2016 the estimate settles at +0.5 % that is still valid for the time being until the end of the year.
Working hours were September + 3.7 % for the textile industry, but -1.3 % for the clothing sector.
Domestic production increased in both sectors in September, textiles settled with + 2.6 % and clothing +1.1 %.
The order situation is rather stable, but forecast for textiles and the coming months are more positive than in the clothing sector. Order logs are increasing in the clothing segment, but rather for basic reasons since the data is only available since 2015 and thus the comparison is possible restrictively.
Production prices were lowering in the first nine months by 0.2 %, however were stabilised in the months before. In the clothing area the prices are constantly with around +1.5 %.
Turnover in textile and clothing retail was declining in the first half of 2016 and distinctly in September as a result of the unusual weather situation, however the slowdown of 10.7 % is strong. In the first nine months of 2016 clothing retailing turnover decreased by 1.7 %, whereas general total retailing in Germany increased by 2.3 %.
The positive situation in the external trade did not continue in September. Exports have increased for the two sectors of textiles and clothing, however minimal by 0.2 %. In September textile exports were up 1.2 %, whereas in clothing these decreased by 0.6 %. Imports for both segments decreased by 0.5 %, thus the trade balance decreased also by 1.7 % against 2015, and raw material imports decreased in September by 0.9 %.