At the turn of the year the effects of Corvid-19 leave already first flaws in Germany’s textile world

The majority of economig figures are based upon the month of January 2020 and remain untouched by the Corona crisis. Turnover and Occupation are inclined to further decrease. The drastic sinking import figures for primary materials and clothing from China are the first sign.

Also the ifo-sentimentindex is very negative as at the time of the financial crisis. All of this reports Textil & Mode the umbrella organisation for German Textiles and Clothing.

Sinking turnover is now the case for the start into the new year. In January these are sinking for textiles by – 4.1 % and for clothing -1.2 %. Thus, the new year starts – without Corona efect – for the two sectors with a minus of -3.0 %.

Occupation is further decreasing – 3.2 % for Textiles and -5.2 % for clothing, leading to the fact of -2.8 % less persons occupied than in January 2019.

Also domestic production is sinking. Textiles report markedly and steadily, on average of the past three months we end up with slightly below -7 %. Also the domestic clothing production tendentionally sinks, however not so contineous.

The order situation is for both segments also decreasing, but clothing to a lesser extent.

Production price were during the past months increasing only slightly, textiles are not able to reach higher prices, the plus is meager +0.4 %. Clothing reports a bit more distinct price increases.

Proceeds in specialised German retail trade increases in January by +0.9 %,however behind the value of total retailing (+3.3 %)

Foreign Trade starts with the same melody as 2019 was ending: Increase of clothing exports (+3.3 %), backlashes at textile exports (-7.3 %). Imports reflect already the spreading of the pandemic, the decreases are the result of marked sinking imports of clothing from China.

The import trade surplus sank in January by – 6.1 %.

Raw material imports are decreasing by 21.3 % in comparision to January 2019. The influenvce of the pandemic in China are felt.

The ifo-economic sentiment index of March 2020

The economic situation of the German texile and clothing industry becomes evident by the survey results of the ifo-institute: The short term expectations are crashing. These are already now so bad as since the finance crisis more than 10 years ago. Supply chains are in danger or interrupted the same as in the automobile industry. Clothing is similarily touches, this on the sourcing side because of the problems of the providing countries China and Italy, but as well as on the selling side, based upon the closure of the specialised retail shops.