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Construction Sector Outlook: CEOs Anticipate Activity Rise in Q1 2026
Morocco’s High Commission for Planning (HCP) reports that construction firms expect a rebound in activity during the first quarter of 2026. The boost is driven by growth in building construction and civil‑engineering segments, while specialized works are forecast to dip slightly. Employment is set to rise modestly, and about four‑fifths of companies plan to invest in equipment replacement. The sector’s utilisation rate stood at 69 % at the end of 2025, with order books described as normal. However, 9 % of firms faced raw‑material shortages and 31 % flagged cash‑flow difficulties, highlighting lingering supply‑chain and financing challenges.
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Overview
Morocco’s High Commission for Planning (HCP) released its quarterly business survey, indicating that construction firms expect their activity to increase in the first quarter of 2026.
Key Drivers
- Higher demand in the building construction and civil engineering branches.
- A modest decline expected in specialized construction works.
The survey also notes a slight rise in employment across the sector.
Recent Performance
In Q4 2025, overall construction activity grew, buoyed by gains in civil engineering and specialized works, while activity in building construction remained flat.
Order books are described as “normal” and the utilisation rate of production capacity (TUC) was measured at 69 %.
Challenges
- 9 % of firms reported difficulties sourcing raw materials during Q4 2025.
- 31 % of CEOs characterised their cash‑flow situation as “difficult”.
Investment Outlook
Approximately 39 % of construction companies made capital expenditures in 2025, mainly for replacing ageing equipment.
Source: Haut‑Commissariat au Plan (HCP) – Quarterly Conjuncture Survey, 2025‑2026.