The manufacturing sector in Morocco registered a slight increase in production during the first quarter of 2025, supported by a rebound in chemical industries, food production, and non-metallic product manufacturing. Conversely, the sector saw a decline in other activities, such as clothing production, electrical equipment manufacturing, and rubber and plastic products, according to a report from the High Commission for Planning.
Most business leaders believed that the level of order books remained normal, while employment stabilized, with the capacity utilization rate reaching 74% during the same period. The report revealed that 37% of manufacturing companies faced difficulties in sourcing raw materials, particularly imported ones, while 23% of companies reported difficult cash flow situations, a percentage that rose to 44% in the leather and footwear sector.
In the extractive sector, production increased thanks to a rise in phosphates, coinciding with higher prices and the number of workers. In contrast, the energy sector experienced a decline in production due to decreases in electricity, gas, and steam production and distribution, which also affected sales prices and employment. The environmental sector saw stability in production and workforce, amid stagnation in water collection, processing, and distribution activities.
Looking ahead to the second quarter of 2025, manufacturing executives are optimistic about improved production, especially in automotive, chemical, and food manufacturing activities, while employment stability is expected to continue.
Executives in the extractive sector anticipate a decline in production due to a drop in phosphate output, while the energy sector is expected to see an increase in production despite a decrease in the number of workers. Meanwhile, professionals in the environmental sector foresee stability in performance and production.
