BAM Anticipates Growth in Industrial Production
The Moroccan industrial sector is brimming with cautious optimism as it looks towards the upcoming months, despite ongoing uncertainties in the global market. According to the latest economic survey released by Bank Al-Maghrib, businesses expect an overall increase in production and sales in the coming quarter, signaling a gradual recovery in industrial activities. This positive trend is projected to affect most industries, with the notable exception of the chemical and textile sectors, where a decline in production is anticipated. Nonetheless, the outlook remains tempered as more than 25% of firms express uncertainties regarding future activities, indicating a still fragile economic environment.
In March 2026, industrial activities reportedly showed signs of improvement, with production and sales seeing an uptick. The utilization rate of production capacities reached 78%, reflecting a notable increase particularly in the chemical, mechanical, and metallurgy sectors. However, production stagnated in the agri-food segment and decreased in textiles and leather. Sales have generally improved across various sectors, benefiting both local markets and exports.
Despite these advancements, overall orders are experiencing a downturn, especially in textiles and chemicals, leading to order books that remain below normal levels across most sectors. The mechanical and metallurgy fields, however, maintain a standard level of demand. In terms of business climate, 68% of industrialists describe conditions as 'normal' for the first quarter of 2026, while 22% view them as 'unfavorable.' This sentiment varies by sector, being more positive in chemicals and metallurgy, while textiles and leather face greater challenges.
Employment and Investment Trends
When it comes to supply chain conditions, 73% of companies rate them as 'normal,' although disparities still exist. The agri-food sector is reportedly the most constrained, with nearly half of the firms reporting difficulties in sourcing supplies. In terms of employment, there has been a general increase in workforce numbers during the first quarter, driven by growth in the mechanical and metallurgy sectors, while job numbers have declined in agri-food and textiles. Looking ahead, manufacturers forecast an overall reduction in workforce size, particularly in the chemical and textile sectors, though some areas are expected to see job growth.
Cost pressures are evident, with over half of the industrialists (54%) reporting an increase in unit production costs, while 43% indicate costs have remained stable. Despite these pressures, cash flow remains largely under control, with 87% of companies characterizing their financial situation as 'normal' and only 9% describing it as 'difficult.' Access to bank financing is not perceived as a major obstacle at this stage, with 75% of firms rating it as 'normal' and 18% as 'easy.' Most industrialists (90%) report that credit costs have stabilized, although some increases have been noted in certain sectors.
Investment expenditures have generally risen in the first quarter, particularly within the agri-food and chemical industries, predominantly funded by internal resources (73%) compared to 27% through credit. This upward trend in investment is expected to continue, as manufacturers foresee an increase in spending across all sectors in the upcoming months. Ultimately, the Moroccan industrial landscape is navigating a complex environment: while there is a gradual recovery in activity and a positive outlook, persistent uncertainties regarding demand and order books continue to challenge the visibility of businesses.
As reported by lnt.ma.
