Cautious recovery amid persistent challenges

Looking ahead, optimism is growing with 43% of survey participants expecting improved conditions in the next six months, lifting the global outlook to a positive balance of +29 percentage points. Regions like South America and producer groups such as spinners, which report a balance of +46pp and +45pp, respectively, are leading this sentiment.

Order intake continues its steady recovery with January 2025 figures showing a balance of –6pp after 14 months of progress. South Asia and South America post strong positive performances, but home textile is the only segment with a positive balance. Meanwhile, the global order backlog has risen to 2.5 months, with North & Central America at 2.9 months, indicating increased demand despite persistent concerns.

Challenges persist as global capacity utilization rate slips to 72%, even though it remains above previous lows. The survey also highlights ongoing worries over weak demand and geopolitical risks, with high energy and raw material prices adding to industry pressures. However, order cancellations have stayed low and stable, and overall inventory levels have remained relatively unchanged.

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