Industrial Renaissance: Moroccan Manufacturing Strengthens in December 2023
In the latest monthly business trend survey by Bank Al-Maghrib (BAM), Morocco's manufacturing sector showcased significant improvements in December 2023.
The survey reveals a notable surge in production across most industries, with only the "mechanical and metallurgy" sector experiencing stagnant output, and "electrical and electronics" witnessing a decline. Plant utilization maintained stability at 76% capacity overall.
Both domestic and export sales reported gains across all sectors, except for "mechanical and metallurgy" and "electrical and electronics," where sales experienced a slight contraction. Meanwhile, order books expanded in every area except "textiles and leather," illustrating a robust demand.
Despite this positive trend, order backlogs generally remained below normal levels, with the exception of "mechanical and metallurgy," where they were at an average level. Looking ahead, manufacturers anticipate a stabilization in production and sales over the next three months. However, more than one in five expressed uncertainty regarding future business conditions.
The data presents a mixed but overall improving picture for Moroccan manufacturing. The surge in production and sales signals the sector's resurgence after pandemic disruptions. Nevertheless, persistent capacity constraints and cautious sentiment suggest challenges lie ahead to capitalize on the early gains in Morocco's ongoing industrial renaissance.