Morocco industry slows as sales decline in January survey

Tuesday 03 - 14:20

By: Dakir Madiha

Morocco industry slows as sales decline in January survey

Morocco’s industrial sector began 2026 with uneven performance, as overall production slowed and sales declined across several branches, according to Bank Al-Maghrib’s latest monthly survey.

The central bank reported that factories operated at 77 percent of capacity in January, indicating underused production potential. Behind this average, sector trends diverged, reflecting a fragile business climate at the start of the year.

The agro-food industry recorded stronger activity. Output increased and capacity utilization reached 70 percent. Sales improved, supported by domestic demand, although exports fell. New orders rose significantly, pushing order books above normal levels and signaling sustained activity. Companies in the sector expect further gains in production and sales over the next three months. Still, more than a quarter of firms reported uncertainty about future trends.

The textile and leather sector faced greater pressure. Production declined in most segments, except for textiles, which saw limited growth. Capacity utilization stood at 82 percent, yet overall performance remained weak. Sales edged up slightly, while clothing and fur activities stagnated. New orders fell, leaving order books below average. Industry leaders anticipate stable production in the coming months, with modest sales improvement. However, 41 percent of companies expressed concern about future output, one of the highest uncertainty levels among surveyed industries.

Chemical and parachemical industries also reported a contraction in production. Capacity utilization reached 76 percent, and sales declined in both domestic and export markets. New orders weakened and backlogs dropped below normal levels. Despite these setbacks, companies expect a rebound in production and sales during the next quarter.

Mechanical and metallurgical industries showed stronger momentum. Production increased and capacity utilization rose to 87 percent, the highest rate among the sectors surveyed. Overall sales remained flat, as export growth offset weaker local demand. New orders climbed and order books exceeded normal levels. Most firms anticipate further increases in production and sales, although nearly one-third cited uncertainty about future developments.

The survey, conducted between February 2 and 26 with a 61 percent response rate, suggests that while January results were mixed, several industries expect moderate recovery in the coming months. The textile and leather sector remains the main area of concern, with stagnation likely to persist.