Morocco’s industrial activity experienced a mixed performance in December, with a decline in production across most sectors counterbalanced by an increase in overall sales. These findings were highlighted in Bank Al-Maghrib’s (BAM) latest monthly industrial survey.
Production decreased in nearly all industrial branches, with the exception of chemicals and petrochemicals as well as textiles and leather, which managed to maintain stable output levels. Despite this widespread drop in production, stronger sales performances helped mitigate the overall impact on the sector.
In fact, sales rose across many industries, although the textiles and leather sector saw a decline. Meanwhile, sales in the electrical and electronics sector remained flat. These dynamics sustained a capacity utilization rate (CUR) of 78%, which is considered relatively solid despite the production challenges.
Regarding orders, Bank Al-Maghrib reported overall stability compared to the previous month. However, the situation varied by sector. The mechanical and metallurgy branch recorded an increase in new orders, while orders remained stable in chemicals and petrochemicals but declined in agri-food, textiles and leather, and electrical and electronics industries.
This sectoral disparity is also reflected in the state of order books. In mechanical and metallurgy, order books were stronger than usual, while they remained at normal levels in agri-food and chemicals. However, textiles and leather as well as electrical and electronics registered below-average order book levels, indicating weaker demand in these industries.
Looking ahead, manufacturers generally expect a recovery in both production and sales over the next three months in most industries. However, mechanical and metallurgy is projected to face further declines, while output in electrical and electronics is expected to stagnate. Notably, around 29% of businesses expressed uncertainty about near-term production trends, reflecting caution in the face of ongoing challenges.
These forecasts underscore the continued adjustments and uneven performance within Morocco’s industrial sector as the country navigates a complex economic landscape at the close of 2024.
