Italy's important fashion houses will be lucky this year to see a turnover similar to 2007, according to a new report by the National Fashion Chamber of Commerce.
The study pointed out that already in the last three months of 2007 ''there were clear signs of a slowdown and a trend reversal'' with turnover off 0.1% in the textile sector and down 1.1% for clothing and accessories, while overall production was running 4% lower than the last quarter of 2006.
The fashion industry closed 2007 with an estimated turnover of 69.5 billion euros, an increase of 2.5% over the previous year compared to an expected rise of 2.9%.
''And the picture for 2008 keeps getting worse,'' the report said.
At present the forecast for fashion sector is for turnover to rise by just under 1% to around 70.2 billion euros.
However, ''while there are currently no elements sufficient to modify this prediction... there is a high probability that unfavorable conditions will intervene,'' the report said.
This due to declining consumer confidence, the lack of tax breaks for the sector and the rising value of the euro against the dollar, the report explained.
Looking back at the last quarter of 2007, the report pointed out that the biggest drops in turnover, over the last three months of 2006, were for footwear (-3.8%) and textiles (-1%).
According to the report from the fashion chamber of commerce, the sector was suffering from a drop in demand at home and abroad stemming from a general economic slowdown, which is especially felt in Italy.
''It is difficult to expand in a country which doesn't grow,'' observed National Fashion Chamber of Commerce Chairman Mario Boselli.
