Textile-fashion, Smi confirms slowdown. In 9 months expected -6.2%

The made-in-Italy fashion textile industry - which employs about 300 thousand people - closed the first half of 2024 with a decided slowdown: 3 out of 4 companies recorded a drop in turnover compared to the same period last year, with a significant share (24%) of companies recording -20% and more. This is confirmed by the economic survey conducted by the Economic and Statistical Studies Office of Sistema Moda Italia on textile-clothing companies.

The survey - conducted at the beginning of July on a sample of mainly small companies - paints a critical picture of the sector's performance in the first half of 2024. With employment levels substantially stable (54%) and in some cases even increasing (26%), one in four entrepreneurs admitted to having resorted to social shock absorbers in the second quarter, in order to buffer the situation. Access to shock absorbers in more than half of the cases was massive: in 22% of the cases over 80% of the workers were affected and in a further 26% between 60% and 80%. The percentage will rise again in Q3 when 33% of enterprises, one in three, will apply for shock absorbers.

Entrepreneurs in the sector approach the second half of the year with great caution: 33%, i.e. one in three, expect a further deterioration in market conditions. Looking at the July-September period in particular, 20% ri􀆟ene expect sales to remain at the same level as in 2023, while 61% fear a drop in their turnover compared to then (for 11% of ques􀆟 the expected drop is more than -20%).

According to Smi's estimate, therefore, the first nine months of 2024 will end with a decline in total industry turnover of around -6.2 per cent.

Entrepreneurs' expectations for the whole of 2024 remain less than optimistic. 64% expect the year to end below 2023 levels, while only 11% expect an improvement. The majority of operators (70%) believe that a recovery in the sector will not take place until early 2025.