Consejo Intertextil Español (CIE), an independent organisation that represents the textile and clothing sector in Spain, said its members reported a change in market trends during the trade fairs of the second of 2009 in which, despite the crisis, clients were in better spirits and inclined to do business.

This improvement was said to be due to the recovery in international demand, in particular in emerging countries, and also to the Euro exchange rate.

In contrast, the Spanish market has stayed at negative levels, with a slowdown in general family consumption, the construction crisis and negative expectations regarding the progress of the economy affecting the demand for textile and garment products particularly intensely, according to the organisation.

The figures from the early months of the year show a significant increase in the exports of yarns and fabrics (+ 6.3%), and other manufactured textile products, whereas clothing exports continue to be weak.

The exports undergoing the largest increase were those aimed at the European markets: Italy, Portugal, France, United Kingdom, Asian markets and North Africa.

Should this trend continue, the 8,000 million in total foreign sales could be exceeded, figure reached in 2008 and which is an all-time record, although the organisation pointed out that 65% of this figure correspond to articles of clothing.

In addition, imports continue at negative rates
(-3.6% in the first quarter). The imports of manufactured textile products also grew whereas those for end use (clothing and household items - 5.7%) show a continuing weakness in domestic consumption. The presence continues of products from China and Asian markets in general, representing 46% of the total imported.

However, the organisation said the current tendency to improve has not had a direct effect on companies’ economic and financial situation, since prices continue to be highly contained, due to the important competition in existence, and in addition there is concern over the inflationary tension outbreaks in the fibre and energy markets.

Current perspectives suggest growth based on foreign demand since the Spanish market will continue to be weak, given the economic situation in Spain.

CIE said that for this reason, the progress of the European market is essential for the exports of yarns and fabrics, as well as surrounding Mediterranean countries, with which there exists active inter-industrial trade in the garment field. These areas represent 75% of foreign sales of yarns and fabrics.