Brazil's textile industry workers could be forced to take their holidays during December and January after some of the country's leading textile firms reported a drop in sales.

Brazil's clothing and textile industry has been operating at full capacity for the past three years but many companies are now facing some tough decisions due to the global economic slowdown,

Among the textile manufacturers which reported a fall in profits were Brazil's second largest textile company, Cedro Cachoeira, which posted a 9.2 per cent drop in sales in the first half, with turnover reaching R$37 million.

However, during the nine month period between January and September, sales grew overall by 2 per cent, while net operating profit increased by 28.6 per cent to R$64.8 million.