Overview
- Industry reports show production fell about 22–23% year‑on‑year in April 2026 and the sector recorded a 25.5% decline in the January–April 2026 accumulated period.
- Factories are running far below capacity with utilization around 42.4% in April 2026, meaning roughly six of every ten machines remain idle.
- Formal employment across the textile, clothing, leather and footwear chain dropped to about 97,000 jobs in March 2026, a loss of roughly 14,000 year‑on‑year and more than 24,000 jobs since December 2023.
- Investment in machinery has fallen with textile machinery imports of US$50.4 million in January–May 2026, a 24% year‑on‑year decline, while textile prices have risen far less than overall inflation.
- Trade flows are shifting: imports of many textile inputs and products fell in early 2026 but exports grew, led by a surge in yarn shipments, a pattern that reflects changing competitiveness and firm strategies.