No sign of a trend reversal for German Textiles and Clothing

The month of July nurtures the economic numbers of the actual month of July, nor at the latest estimates of the companies give reason of a trend reversal for German textiles and clothing. All figures are negative. The turnovers sink continuously in two digital rates and also occupation shows lower figures inspite of short work. Also early indicators such as order intake offers no glimmer of hope. One can only hope that the textile and clothing sector will be entitled to profit of the German general economic uptrend.

Also in July the turnovers sank again, particularly in clothing markedly. The loss -30.3 % against July 2019. Textiles lost in July 2020 -11.0 %. Thus the turnover losses of seven months of 2020 settled -15.0 %. Clothing lost up to July – 21.9 %, whereas textiles losses were 10.8 %. Also turnovers show no trend reversal, so far.

Occupation is decreasing too, but not so strongly. Clothing had 9.6 % less personnel as to compare to July 2019, whereas textiles lost 4.7 % personnel.  It is noteworthy that these figures are excluding real decreasing capacities, short time workers and dormant employment relationship.

Domestic Production sank also markedly. The production decrease settles at textiles -12.3 %, whereas clothing showed a minus of 14.9 %.

Order intake sank in both sectors markedly, Textile with a deduction of 12.1 % and clothing -18.5 %. In observation of the past month we cannot make out any signs of a trend reversal or a bottom line.

Production prices are far away from the pre-crises level. Turnovers are negative as to compare to the same period in 2019. This trend seems to continue due to Coid-19, because the rates are changing only slightly.

Turnover in the specialised retail reaches still a certain level, but far from the level of the pre-crisis. This means decreasing turnovers than in 2019. In July only 6.4 % less than in the same period of 2019.Total turnover of the specialised retail notes less 28.9 % below the 2019 level. Total German retail recorded an increase of 4.0 %.

Foreign Trade continues the negative trend of the past months. The exports are markedly retracting (textiles -8.3 % in July 2020, clothing -10.9 %)

Textileimports increased extremely (+52.1 %) in July or totally in the first seven months by +64.6 % per July 2020, this is valid only for confectioned goods in conjunction with  mouth and nose masks production. 

Clothing imports sank markedly, as of July 2020 by 11.6 %. Import surplus as per July settles at +56.2 %.

The raw material imorts sank in comparison to 2020 by -23.1 %.

Ifo- Busines Climate Index September 2020

Since the actual estimates of the German Industry and the economy are improving, are the index values for the textile and clothing sectors sinking. It is a fact that the estimates were in parallel with those of the total manufacturing sector, but in September 2020 these tend to sink again. A distinctive hint to a trend reversal is missing, and an evaluation of the details are suggesting that the short time expectations of the firms grow rather in direction of pessimism.