The 40th ITMF survey, conducted between 21 and 29 September 2026, put the global business-situation indicator at -23 percentage points.
While this was above the -46 percentage points recorded in November 2023, the federation said uncertainty had become a persistent feature of trading conditions.
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Only South Asia, at +13 percentage points, and Africa, at +9 percentage points, reported positive current business conditions.
North and Central America recorded the weakest regional reading at -56 percentage points, followed by South America at -44 percentage points and Europe at -36 percentage points.
Performance also differed across the textile value chain. Fibre producers were the only segment to report positive conditions, with a reading of +67 percentage points.
Spinners recorded -33 percentage points, while finishers reported -42 percentage points.
In addition, textile machinery manufacturers stood at -35 percentage points, reflecting companies’ continuing reluctance to commit capital expenditure, according to the survey.
Expectations for the next six months were more positive, reaching +19 percentage points globally.
However, 46% of respondents expected no change, suggesting that the improvement in sentiment has not been matched by broadly stronger trading signals.
Africa was the most optimistic region, with an expectations reading of +59 percentage points. East Asia, at -20 percentage points, and South-East Asia, at -6 percentage points, were the only regions to retain a negative outlook.
Fibre producers were also the most confident industry segment, reporting an expectations balance of +67 percentage points.
Order intake improved marginally to -24 percentage points but remained in negative territory. South America reported a record low of -69 percentage points, indicating particularly difficult demand conditions in the region.
The federation said rising costs and inflation could limit the scope for a material recovery in the near term. Weak demand was the concern most frequently cited by respondents, at 56%, followed by high raw-material prices, cited by 42%, and energy costs, at 41%.
The survey linked renewed inflationary pressure to the war in Iran. At the same time, concern over geopolitics fell to 36% of respondents, from 46% in the July survey.
Companies’ responses to US tariffs have varied. Nearly three in 10 respondents (29%) said they were diversifying into markets outside the US. A further 23% were investing in automation and efficiency measures, while the same proportion said they were absorbing higher costs.
Order backlogs shortened slightly to 2.3 months. This remained within the 2.0-to-2.5-month range recorded since mid-2023, which ITMF said reflected a tendency among companies to work primarily against confirmed orders rather than build longer production pipelines.
Capacity utilisation increased to 71%, above the 68% low recorded in November 2023. It nevertheless remained below the levels of more than 80% reported before late 2022.
Order cancellations were stable at about 2% on average, although finishers have recorded increases for three consecutive surveys. Inventory levels were generally lean, with South-East Asia reporting a record low.
The Americas were an exception, where relatively high inventories combined with weak incoming orders point to a build-up of unsold stock, the survey found.
