The two main processes of making fabric from yarn are weaving and knitting.
Weaving: It is a process of making fabric (or cloth) by arranging two sets of yarns passing in one direction with other yarns at right angle to them.
In other words, two sets of yarns are woven to make fabric. Weaving of fabric is done on looms. The looms are either hand operated or power operated.
Knitting: It is a process of making a fabric by interlocking loops of single yarn with knitting needles or machines.
Sweaters and many other clothing items are made of knitted fabrics.