Casablanca – Bank Al-Maghrib’s latest report highlights positive expectations among Moroccan industrial business owners for the coming months, predicting an overall increase in production and sales.

The May 2024 economic survey for the industrial sector reveals that most industrial companies are optimistic about future growth, except for the textiles and leather sectors, which anticipate declines in production and sales.

Survey data collected from June 3 to June 28, 2024, indicates an overall improvement in industrial activity compared to the previous month. Production levels have risen across all sectors, maintaining a capacity utilization rate of around 78%.

Sales have reportedly increased both domestically and internationally, with the exception of the textiles and leather market, which saw a downturn.

Order volumes have risen in all sectors except the food industry. Order books remain at a normal level overall, with “chemistry and parachemistry” and “electricity and electronics” sectors performing above average, while “mechanics and metallurgy,” “food industry,” and “textiles and leather” sectors lag below average.

In the food industry sector, production saw a significant rise in May 2024, achieving a capacity utilization rate of 70%. While domestic sales grew, exports faced a decline. Orders in this sector fell, with order books dropping below the usual levels. Despite this, business owners expect production and sales to increase in the next three months, though 31% are uncertain about production growth, and 28% are skeptical about sales growth.

The textiles and leather sector experienced growth in production, except in clothing and fur manufacturing, which remained static. This sector maintained a capacity utilization rate of 79%. Sales varied, with declines in clothing and fur, increases in leather and footwear, and stagnation in textiles. Domestic sales rose, while foreign market sales fell. Orders increased in all areas except textiles, where they dropped, keeping order books below average. Looking ahead, companies in this sector foresee a decline in production and stagnant sales, with over a third expressing uncertainty about future sales growth.

The chemistry and parachemistry sector saw a rise in production in May 2024, with a 76% capacity utilization rate. Sales increased in both domestic and foreign markets. Orders also grew, with order books above average. Businesses in this sector expect continued growth in production and sales in the coming months.

In the mechanics and metallurgy sector, production grew, achieving an 88% capacity utilization rate. Sales increased domestically and internationally, except in the automotive industry, which saw a decline. Orders rose, though order books remained below average. Industrial business owners in this sector anticipate increased production and sales over the next three months.

For the “electricity and electronics” sector, production increased in May 2024, with a capacity utilization rate of 85%. Sales grew across all activities, with a rise in domestic sales and a decrease in foreign sales. Orders also increased, with order books above average. Over the next three months, business owners in this sector expect further growth in production and sales. However, 25% are uncertain about future production growth, and 28% are unsure about sales growth.

Overall, the industrial sector in Morocco is showing signs of optimism, with expectations of increased production and sales despite some areas of uncertainty and sector-specific challenges.