Morocco's business activities show encouraging results across all industries

Some 52% of Moroccan companies experienced an increase in production during the month of June, while 38% reported an increase in sales, according to a recent monthly survey conducted by Morocco's central bank, Bank Al-Maghrib (BAM). 

The survey indicates a general improvement in business activities, with the Production Capacity Utilisation Rate, a measure that compares actual production with potential production, rising slightly to 74% from 73% in the previous month. 

As Morocco World News reports, the results reflect growing confidence in the economy, as businesses appear more optimistic about the prospects for increased production and sales.  

Looking ahead to the next three months, 33% of respondents expect production to increase, while 37% expect it to remain stable and only 6% foresee a decline. 

As for sales prospects, 35% of the companies surveyed expect an increase, 31% expect sales to remain unchanged and only 4% expect a decrease. 

The survey reveals that the Moroccan textile industry has not yet caught up with other sectors, with 57% of companies reporting stagnating production and 51% stagnating sales. Similarly, sales and orders have stagnated, reflecting a decline in the textile industry and the leather and footwear industry, and an increase in the leather industry. 

Looking ahead to the next three months, manufacturers are forecasting a decline in both production and sales, with 33% indicating a lack of visibility regarding future production and 26% regarding future sales. 

Despite the general slowdown in business activities, the textile industry stands out with an above-average Production Capacity Utilisation Rate of 77%. 

On a positive note, companies in the Moroccan agri-food sector recorded encouraging results, with a 50% increase in production in June and a 47% increase in sales. The Overall Production Capacity Utilisation Rate stood at 70%. Sales also rebounded, with exports and orders increasing. 

The electronics industry also recorded optimistic results, with a 73% increase in production and sales. The industry has the highest production capacity utilisation rate at 82%. Looking ahead, employers expect sales to continue to increase. 

On the other hand, the chemical and para-chemical sector experienced an increase in production, with a Production Capacity Utilisation Rate of 74%. On the other hand, sales decreased, both in the local and international market. However, orders grew, and the sector's manufacturers expect activity to improve in the next three months. 

During the same period, the mechanical and metallurgical sector experienced an increase in both production and sales, reaching a Production Capacity Utilisation Rate of 77%. Sales increased in both the local and international markets. While orders increased in all major sub-sectors, except in automotive where they remained stagnant, order books returned to a normal level. For the next three months, employers expect a boost in production and sales.