Casablanca – Morocco’s construction sector is entering the third quarter of 2026 with expectations of higher activity, supported largely by building construction, specialized works and continued public investment in infrastructure. The outlook comes as companies report a stronger second quarter, although supply constraints and cash-flow pressures remain among the main challenges facing businesses. 

The latest quarterly business survey published by Morocco’s High Commission for Planning (HCP) on September 3 shows that construction companies expect activity to increase during the July-September period. The survey covers companies operating in construction and asks business leaders to assess recent activity and their expectations for the following quarter. 

The expected improvement is concentrated in two areas: building construction and specialized construction activities. Civil engineering, meanwhile, is expected to remain broadly stable. Companies also anticipate an increase in employment during the third quarter, suggesting that the expected rise in activity could translate into additional demand for workers. 

The latest expectations follow an improvement recorded during the second quarter. According to the HCP survey, construction activity increased during April-June, with building construction and specialized works registering gains while civil engineering remained stable. Order books were assessed as being at a normal level, and employment increased during the quarter. The sector’s capacity utilization rate reached 75%. 

The HCP’s broader economic assessment also points to a recovery in construction during the second quarter. In its July 2026 economic outlook, the statistical authority estimated that construction activity grew by 2.1% year-on-year in the second quarter, compared with 1.5% in the first quarter. The recovery followed two quarters affected by unusually heavy rainfall and was supported by continued public investment in infrastructure. 

Cement sales provided another indication of the change in momentum. HCP estimates showed an 8% year-on-year increase in cement sales during the second quarter, following a 10.9% contraction in the previous quarter. The improvement was linked mainly to public infrastructure projects, while residential construction remained comparatively moderate. 

For the third quarter, the HCP expects construction growth to accelerate to 3.4% year-on-year. The projection is based primarily on the continuation of major infrastructure projects, while housing construction is expected to continue expanding at a more moderate pace. This forecast comes separately from the business survey, which measures companies’ expectations, but the two sets of findings point in the same general direction for the sector. 

Infrastructure spending is therefore becoming an important source of demand for construction companies. The HCP expects productive investment across the economy to increase by 11.1% during the third quarter, driven by stronger public infrastructure projects. Domestic demand is also expected to accelerate slightly and contribute 7.5 percentage points to overall economic growth. 

The wider economic environment is also expected to provide support. The HCP projects Morocco’s overall GDP growth at 5.4% in the third quarter of 2026, compared with estimated growth of 4.8% in the second quarter. The acceleration is expected to come from a broader recovery across economic activities, including the secondary sectors, alongside continued strength in agriculture and services. 

However, the construction sector’s improved outlook does not mean that companies are operating without constraints. The latest business survey found that 14% of construction companies experienced difficulties obtaining raw materials during the second quarter. In addition, 28% of business leaders described their cash-flow situation as difficult. These figures indicate that financing and supply conditions continue to affect companies even as activity improves. 

The pressure on construction companies also reflects developments in production costs. The HCP’s broader economic report noted that selling-price expectations in construction had strengthened significantly compared with the same period a year earlier. The balance of opinion concerning selling prices increased by 22 points, indicating that companies continued to face price pressures despite the improvement in activity. 

Employment represents another important part of the sector’s outlook. The latest business survey indicates that construction companies expect their workforce to increase during the third quarter. This follows an increase in employment during the second quarter. HCP labor-market data from the first quarter showed that construction accounted for 12.7% of employment against wages and salaries, highlighting its significant role in the national labor market. 

The construction outlook also needs to be viewed alongside developments in other parts of the economy. Manufacturing companies expect production to increase during the third quarter, although their expectations vary considerably between activities. Food processing, chemicals and non-metallic mineral products are expected to perform better, while automotive, clothing, and paper and cardboard activities face expectations of lower activity. Employment in manufacturing is expected to remain broadly stable. 

The extractive sector is also expected to recover, with phosphate production providing the main support. Energy production is projected to rise as well, accompanied by an increase in employment. Environmental activities, particularly water collection, treatment and distribution, are expected to remain broadly stable. 

Taken together, these developments suggest that construction is becoming one of the areas supporting the broader improvement expected in Morocco’s economic activity during the second half of 2026. The combination of stronger infrastructure investment, improved cement sales, higher second-quarter activity and positive business expectations provides a basis for the anticipated acceleration. 

At the same time, the figures show that the recovery is uneven. Large infrastructure projects are providing much of the momentum, while residential construction is advancing more slowly. Companies also continue to face difficulties with raw-material supplies and cash flow, which could limit the pace at which some businesses expand. 

For the third quarter, therefore, the available indicators point to a construction sector with stronger activity than earlier in the year, but one that remains sensitive to costs, financing conditions and the availability of materials. The HCP’s 3.4% growth projection and the positive expectations reported by construction companies both suggest that activity could gain further momentum through the summer, with public infrastructure investment remaining a key driver.