The impact that inflation is having on the numerous metrics that the industry tracks was also emphasized in the spring report released by Euratex. For instance, the volume of European textile exports only climbed by 7 percent even while the value of those exports rose by 13 percent. Uncertainty in EU client countries is being fueled, according to Euratex, by rising energy prices and changes in central bank policies.
The latest Spring Report from the European Apparel and Textile Confederation (Euratex) warns about the growing trade deficit in the EU textiles and apparel industry as the industry becomes more exposed to global pressures.
This record growth in total trade is mainly due to a sharp increase in clothing imports (+36,6% in value), especially from China and Bangladesh, which outweighs a positive export performance.
The Euratex Spring Report highlights significant differences between trade-in value and volume. EU’s export of textile products has increased in value but dropped by nearly in volume.
Director General of Euratex, Dirk Vantyghem said: “This report confirms once again that “textiles” is one of the most globalized sectors of the European economy, and hence the importance of taking that global dimension into account when designing EU and national policies. Failing to do so may have a devastating effect on the global competitiveness of the European textile industry.”
Euratex said it understands that efforts are also required to strengthen the EU’s export performance, to rebalance trade relations with the rest of the world. It believes that EU companies are world leaders in high-end fashion products and technical textiles.
Euratex acknowledged a reversal in garment production in the previous quarter in its quarterly report, which was released in early April, but cautioned of a general decline in industry confidence.
