Industrial production saw a noticeable rebound in the second quarter of 2025, with several key sectors posting improved performance, according to the latest business climate surveys released by Morocco’s High Commission for Planning. The manufacturing industry, in particular, showed signs of recovery. Output increased, order books were considered generally normal, and employment levels held steady. Capacity utilization stood at 74%. However, challenges remain—around 40% of firms reported supply chain disruptions, especially when it comes to imported raw materials. Despite this, inventory levels were deemed typical, though nearly one in five business leaders said they were under financial strain.
The extractive sector, by contrast, moved in the opposite direction. Production dropped, and this decline was accompanied by job losses, even though selling prices rose during the period. The energy sector fared better, with both production and prices increasing, but employment in that field also fell. Environmental industries maintained a steady pace, with stable production levels, average demand, and no significant change in staffing.
Construction followed the upward trend seen in manufacturing. Activity picked up, order volumes stayed within normal ranges, and employment remained largely unchanged. Capacity utilization in this sector reached 72%. Yet some challenges persisted—11% of construction firms cited supply difficulties, and a more pressing concern emerged around financial health, with 30% of business owners describing their cash flow situation as strained.
Looking ahead to the third quarter, expectations remain broadly positive. Manufacturers anticipate further growth in output, although workforce numbers are not expected to shift much. A modest recovery is also projected in the extractive industry, but employment is likely to stay flat. Energy companies foresee continued expansion, even as job cuts continue. In environmental sectors, forecasts suggest little change in either production or employment.
In construction, sentiment is cautiously optimistic. Business leaders expect activity to rise, but many also predict a drop in workforce numbers over the coming months.
