Textile sector experiences its steepest downturn in two years during October

In a recent report by the National Institute of Statistics (INE), Spain's textile and leather-footwear industries showed contrasting results in October 2021.

The textile industry experienced a setback, with the Business Turnover Index (BTI) decreasing by 10.7% compared to the same month in 2020. This marks the largest year-on-year decrease in the last two years. Notably, Amancio Ortega, founder and major shareholder of Inditex, which owns brands like Zara, is the textile business in Spain experiencing the largest current sales decline.

On the other hand, the leather and footwear sector saw a positive trend. The sector's turnover increased by 9.2% in October, accumulating an average increase of 11.2% so far this year. This average year-to-date increase is higher than both the textile and clothing sectors.

The entry of orders in the leather and footwear sector increased in October, while it decreased in the textile and clothing sectors. In the footwear sector, orders increased by 2.3%, contrasting with a 19.4% decrease in the clothing sector and a 11.8% decrease in the textiles sector.

The BTI for the entire Spanish industry remained stable in October with a variation of 0%. However, the situation in the clothing sector is more negative, with an average decrease of 3.6% in the first ten months of 2021, compared to the textile sector's average increase of 0.8%.

The drop in October's turnover was preceded by a period of increases in business magnitudes from November 2010 to May 2021, but since June, the sector's turnover has only increased in August with a rise of 2.5%.

In comparison, the textile sector's turnover only increased in August since June 2021. The clothing sector registered a year-on-year decrease of 15.1% in October compared to the same month in 2010, unlike the leather and footwear sector's year-on-year increase of 9.2% in October 2021.

Overall, the Spanish leather-footwear sector is showing signs of recovery, while the textile and clothing sectors continue to struggle. The full-year results for 2021 are expected to provide a clearer picture of the industry's performance.