Economic Update

T&C industry evolution during the second quarter of 2020 and short-term prospects

The industrial activity in the T&C sector strongly contracted during the 2nd quarter of 2020, reflecting sharp decreases in household spending, retail sales and EU exports due to the COVID19 pandemic.

The coronavirus pandemic triggered the sharpest economic contraction since the 2008-2009 financial crisis. The outbreak has resulted in the shutdown of major economic activities across the EU, particularly the manufacturing and textile-using sectors as the clothing, furnishing and automotive industries. Lockdown measures across the globe to fight the spread of COVID-19 took a toll on global demand, production and trade. Both the textile and clothing sectors experienced a steep decline during the 1st half of the year with the steepest drop recorded during the 2nd quarter 2020.

In September, the EU industry confidence indicator for the months ahead improved in the textile industry, driven by managers’ more optimistic business expectations, but slightly deteriorated in clothing.

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