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Morocco's Industrial Sector Shows Growth in July with 81% Capacity Utilization
Bank Al-Maghrib's latest economic survey reveals positive momentum in Morocco's industrial sector during July, with production capacity utilization reaching 81%. The survey, conducted between August 3 and September 4 with a 55% response rate, indicates expansion in key sectors including agri-food and chemicals, though challenges persist in textiles and mechanical manufacturing. Looking ahead, manufacturers project continued improvement over the next quarter, despite lingering uncertainties affecting roughly a quarter of surveyed companies.
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Morocco's industrial sector demonstrated resilience and growth during July 2026, according to the latest business climate survey released by Bank Al-Maghrib. The comprehensive study, which garnered responses from 55% of surveyed manufacturers between early August and early September, highlights a capacity utilization rate of 81% alongside strengthening production and sales metrics.
Sector-Specific Performance Analysis
The manufacturing landscape presented a mixed picture across different industries. The agri-food sector emerged as a strong performer, recording gains in both production output and sales volumes. Similarly, the chemicals and petrochemicals industry posted increases in manufacturing activity and market performance.
In contrast, the textile and leather sector experienced stagnation in production levels, while the mechanical and metallurgy industries saw declining output during the month. These variations underscore the uneven recovery patterns across Morocco's industrial base.
Domestic and Export Market Dynamics
Sales performance diverged significantly between domestic and international markets. While local market sales strengthened during July, export-oriented revenues contracted, reflecting potential headwinds in foreign demand or competitive challenges in international markets.
The textile and leather segment, along with mechanical and metallurgy manufacturers, reported declining sales figures. However, order books showed encouraging signs in certain sectors, with agri-food and mechanical industries registering increased orders, even as chemicals and textiles experienced order reductions.
Order Book Status and Inventory Levels
Order backlogs presented sector-specific patterns:
- Mechanical and metallurgy firms reported above-normal order books
- Agri-food manufacturers maintained normal inventory levels
- Chemical, petrochemical, textile, and leather producers faced below-normal order volumes
Forward-Looking Projections
Manufacturing executives express cautious optimism for the coming quarter. Anticipated improvements span most industrial branches, with production and sales expected to rise across agri-food, chemicals, and mechanical sectors. The textile and leather industry stands as the exception, where manufacturers predict output will remain flat.
Despite the generally positive outlook, uncertainty clouds visibility for a significant minority of firms. Approximately 26% of surveyed companies indicated uncertainty regarding future production trajectories, while 23% expressed reservations about sales forecasts—suggesting that confidence remains fragile amid broader economic headwinds.
The survey results point to gradual industrial recovery with pockets of strength in consumer-facing and chemical manufacturing, balanced against ongoing challenges in export-dependent and traditional manufacturing sectors.