Morocco services activity declines as wholesale trade remains steady

13:05

By: Dakir Madiha

Morocco services activity declines as wholesale trade remains steady

Morocco's non-financial market services sector recorded mixed performance during the first quarter of 2026, while wholesale trade maintained relative stability, according to business leaders surveyed on sector activity. Half of the executives questioned reported a decline in activity, while 24% indicated growth. The downturn was mainly linked to weaker performance in telecommunications and air transport. At the same time, warehousing, transport support services and water transport activities posted stronger results. Capacity utilization in the services sector reached 74% during the quarter.

Order books remained broadly healthy across the sector. Around 86% of business leaders described their order levels as normal. Employment conditions also showed moderate improvement. About 37% of companies increased staffing levels during the quarter, while 49% maintained stable workforce numbers, indicating resilience despite softer business activity in several segments.

Wholesale trade showed a more stable trend. Domestic sales were considered unchanged by 59% of operators and higher by 22%. Growth was driven by stronger demand for food products, beverages and tobacco, as well as agricultural raw materials, live animals and industrial equipment. However, declines were reported in other specialized wholesale segments and in wholesale trade of information and communication technology equipment. Employment remained stable for 84% of wholesalers. Inventories were viewed as normal by 75% of respondents. Selling prices were largely unchanged according to 54% of businesses, while 42% reported increases.

Business expectations for the second quarter of 2026 point to a more favorable outlook, particularly in non-financial market services. Nearly 46% of executives expect overall activity to increase, compared with 15% anticipating a decline. Growth expectations are supported by air transport, warehousing, transport support services, land transport and accommodation activities. In contrast, broadcasting, programming, postal and courier services are expected to face continued challenges.

Demand prospects also improved. Around 49% of service-sector leaders expect demand to remain stable, while 40% foresee stronger activity. Employment is expected to remain unchanged for 59% of companies, while 26% anticipate workforce expansion. In wholesale trade, 23% of operators forecast higher sales and 67% expect stable performance. Positive expectations are centered on specialized wholesale activities, agricultural products, live animals and food-related trade. Most businesses expect order books and employment levels to remain stable during the coming quarter.