Panel SA: Weak demand makes the textile industry resume year-end collective vacations

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Frustration with Black Friday sales has heightened textile industry concerns about weakening demand for apparel. Some companies are scheduling collective vacations for employees in the final stretch of the year, according to Fernando Pimentel, president of Abit, an association in the sector.

Although the stoppage is normal at this time of year, he recalls that in 2020, with the strong demand driven by the emergency aid paid in the pandemic, most industries chose not to stop activities at the end of the year. “We would like to repeat the rhythm of last year”, says Pimentel.

According to him, the biggest problem is the acceleration of inflation, which has caused families to postpone purchases of clothing. Now, the textile industry is betting on Christmas sales, because a good performance on the date increases the need to replace parts in the first quarter of 2022, normally a weak period in retail.

​In services, the recovery in activity remains strong, according to data released by the consultancy IHS Markit on Friday (3), based on interviews with company executives. In November, the sector’s business PMI index registered growth for the sixth consecutive month.

Service companies reported to IHS great concern about inflation. In November, the consultancy’s index pointed to the biggest increase in costs in the sector since the start of data collection for the index, in 2007. Drinks, food, fuel, transport and public services were cited.

with Ricardo Balthazar (interim), Andressa Motter e Ana Paula Branco

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