During the 3rd quarter 2021, textile activity expanded further, although at a slower pace than in the same quarter of the previous year. EU production and exports in the clothing sector slipped back. Hence, textile activity already reached its pre-pandemic level, while clothing companies are still lagging behind. Apparel retail sales have been sluggish, despite strong consumer spending. Looking forward to 2022, the environment become particularly challenging for the T&C sector, with high prices in raw materials and energy, supply chain disruptions and additional sanitary restrictions related to the Covid-19 pandemic.
The EU Business Confidence indicator for the months ahead remained stable in the textile industry, while it lost momentum in the clothing industry. However, managers’ confidence in both sectors is now higher than its long-term average and to the pre-Covid level. The employment expectations declined in both sectors. Besides, consumer confidence decreased, following a deterioration of households’ expectations about the general economic situation and their intentions to make further purchases. Similarly, the retail trade confidence declined as a result of a deterioration in retailers’ assessment of past and expected business situation.