Brands and retailers were the only segment with a positive balance (+11pp); machinery manufacturers were weakest at -40pp, while garment producers fell sharply from +5pp in May to -25pp.

Business expectations for the coming six months eased marginally from +16pp to +14pp, with 47% of respondents anticipating no change. Africa (+50pp) and South Asia (+32pp) were the most optimistic regions and machinery manufacturers the most confident segment (+36pp).

Order intake dropped to -27pp from -9pp in May, suggesting the May reading was an outlier. The average order backlog eased to 2.3 months and global capacity utilization slipped to 71%, ranging from 75% in South-East Asia to 64% in North and Central America.

Weak demand and geopolitics remain the industry's leading concerns for 56% and 46% of the respondent, respectively, while raw material prices, energy costs and tariffs have all receded — tariffs to just 10%, down from a peak of 40% in September 2025. Order cancellations fell to 2% globally, and the inventory index improved despite still being under average, with stocks accumulating downstream at brands and retailers while upstream segments stay lean.

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