Italy's textile and fashion sector saw 3 percent growth in 2023

Confindustria Moda, Italy’s fashion sector body representing 150,000 manufacturing and service companies that employs a total of 5,383,286 people, has released data indicating an uptick in turnover compared to 2022, reaching 111.7 billion euros. The growth, however is solely attributed to higher sales values, as there is a notable decline in volumes, hinting at a potential end to the post-pandemic economic rebound. The association expresses concern about this shift, casting a shadow on expectations for 2024.

Despite the revenue growth, the sector faces challenges such as reduced profit margins due to rising energy and raw material costs, not offset by downstream price increases. Looking ahead to 2024, there is optimism that energy costs may return to pre-Covid levels, but uncertainties persist regarding the trajectory of raw material costs.

Regarding exports, the sector experienced a 5.1 percent increase in the first eight months of 2023 compared to the same period in the previous year, totaling 54.5 billion euros. The European Union saw 47 percent of the exports, while non-EU regions covered 53 percent of sales. Notably, attention is focused on China, where Confindustria Moda anticipates a shift in trade dynamics favoring domestic products over imports.

Ercole Botto Poala, President of Confindustria Moda, acknowledges the challenges posed by global instability, geopolitical shifts, and production cost increases. Despite the industry's resilience, he emphasizss the importance of collaborative efforts to address shared needs in training, sustainability, and innovation, preparing for the sector's future challenges.