Economic Update

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

T&C manufacturing is massively affected by the COVID19 outbreak, leading to falling industrial activity in the sector. But EU industry confidence indicator in the T&C industry bounced back from rock bottom,
thanks to managers’ improved business expectations.

Industry conditions during the 1st quarter 2020 in the T&C sector have weakened substantially as the coronavirus pandemic poses serious challenges to the EU industry.

In March 2020, COVID-19 containment measures began to be widely introduced by some Member States. The latest available data from April suggests a further strong decline in all structural business indicators, reflecting the impact of companies’ closures and stay-at-home mandates related to the COVID-19 pandemic and recession. Despite a gradual recovery beginning in the second half of 2020, economists forecast estimates that calendar 2020 results will be poor, with unprecedented revenue and profitability declines, more severe than in previous recessions.

However, in June 2020, the recovery of the EU industry confidence indicator for the months ahead, which had tentatively started in May, intensified in the textile & clothing industry.

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