The International Textile Manufacturers Federation (ITMF) released results from its 37th Global Textile Industry Survey on April 7, 2026. The textile industry faces a worsening business climate as geopolitical tensions reshape global trade dynamics. Conducted between March 10 and 19, 2026, the survey captures how regions and segments respond to escalating disruptions.
Global Textile Industry Business Climate Deteriorates
The latest survey paints a challenging picture for the sector. The global business situation balance fell to -25 percentage points, driven by energy market disruptions stemming from the US/Israel-Iran war.
Business expectations suffered an even sharper blow. The global expectations balance collapsed from over +23 percentage points to just +5 percentage points. This marks the lowest reading since November 2022. Industry leaders now face stagflation risks comparable to the shock that followed the Ukraine invasion.
Regional and Segment Performance Diverges
Africa stood out as the only region posting a positive business situation. In contrast, North and Central America recorded the steepest decline across all surveyed regions.
On the expectations side, South America led regional optimism. South-East Asia emerged as the most pessimistic region in the textile industry survey.
Segment performance showed notable variation:
- Garment producers fared best among all segments
- Brands and retailers held the most upbeat expectations
- Textile machinery manufacturers remained deeply negative
- Weavers and knitters faced the most pessimistic outlook
Geopolitics Becomes the Top Concern for Textile Firms
For the first time in the survey's history, geopolitics topped industry concerns at 50%. Weak demand followed closely at 49%. The shift reflects the combined impact of the war in Iran, surging energy prices, rising raw material costs, and logistics disruptions from the Strait of Hormuz blockade.
Meanwhile, tariffs dropped sharply as a concern, falling from 31% to just 13%. This suggests the textile industry has largely adapted to existing trade barriers even as new geopolitical threats take center stage.
Firms are pursuing several strategic responses:
- Market diversification away from the US
- Internal cost absorption to protect margins
- Limited production relocation, as capital-intensive strategies remain a low priority
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Frequently Asked Questions
What does the 37th ITMF survey reveal about the textile industry?
The survey shows a deteriorating global business climate with the situation balance at -25 percentage points. Business expectations dropped to +5 percentage points, the lowest level since November 2022, driven by geopolitical disruptions and energy market instability.
Which regions performed best and worst in the ITMF survey?
Africa was the only region with a positive business situation. North and Central America recorded the steepest decline. South America led in optimism, while South-East Asia was the most pessimistic.
Why did geopolitics overtake weak demand as the top concern?
The US/Israel-Iran war disrupted energy markets and created logistics bottlenecks at the Strait of Hormuz. This pushed geopolitics to 50% as the leading concern, edging out weak demand at 49% for the first time in the survey's history.
The 37th ITMF Global Textile Industry Survey signals a pivotal shift in risk dynamics for the global textile sector. Manufacturers and B2B stakeholders must prioritize geopolitical risk management and supply chain diversification to navigate the challenging months ahead.
