Morocco industry and construction sectors signal moderate second quarter growth

Thursday 04 - 14:20

By: Dakir Madiha

Morocco industry and construction sectors signal moderate second quarter growth

Morocco’s High Commission for Planning (HCP) reported mixed performance across the country’s secondary sector during the first quarter of 2026, while forecasting moderate growth for the second quarter. The assessment covers manufacturing, extractive industries, energy, environmental services, and construction, based on quarterly business surveys conducted among company executives.

Manufacturing output remained broadly stable during the first quarter, although performance varied significantly across industries. Chemical manufacturing, clothing production, and electrical equipment recorded growth. In contrast, automotive manufacturing, rubber and plastic products, and fabricated metal products excluding machinery experienced declines. The industrial capacity utilization rate stood at 74%, indicating moderate activity levels. Supply chain pressures persisted, with 43% of companies reporting difficulties securing raw materials, particularly imported inputs. Financial conditions also remained challenging, as 20% of business leaders described their cash flow situation as difficult, a figure that rose to 30% in the textile and leather industries.

The extractive sector posted lower production due mainly to weaker phosphate output. Energy activities expanded, supported by stronger electricity, gas, and steam production and distribution, although employment levels declined. Environmental industries recorded little change, with water collection and treatment activities remaining largely stagnant. In construction, activity increased thanks to stronger building projects and specialized construction work, while civil engineering activity showed no significant movement. Capacity utilization in the sector reached 72%, employment increased, and 23% of firms reported supply difficulties. Meanwhile, 30% of construction executives described their financial situation as difficult.

Looking ahead to the second quarter of 2026, manufacturers expect production growth led by the food, chemical, automotive, and electrical equipment industries. However, paper and cardboard production as well as textile manufacturing are projected to decline. Employment across manufacturing is expected to remain broadly unchanged.

The outlook for other sectors remains uneven. Extractive industries anticipate another production decline linked to phosphate activity, accompanied by lower staffing levels. Energy producers expect output growth despite a projected reduction in employment. Environmental services foresee stable production and workforce levels. Construction companies remain optimistic, forecasting further expansion driven by building construction and specialized works, while civil engineering is expected to remain flat. The sector also expects additional job creation during the quarter.