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Rabat – Around 52% of Moroccan businesses reported a rise in production in June, and 38% reported increased sales, according to a monthly survey from Morocco’s Central Bank, Bank Al-Maghrib (BAM).
The publication notes an overall improvement in business activities, with the Production Capacity Utilization Rate – a measure of actual production against the potential production – slightly increasing to 74%, up from 73% the previous month.
The results of the survey reflect rising confidence in the economy as businesses are more optimistic about the prospects of increased production and sales.
When asked about the outlook for business activities for the following three months, 33% said they expect production to rise, while 37% said they expect production to stagnate, and only 6% said they expect a drop.
Regarding the outlook for sales, 35% of surveyed businesses said they expect sales to rise, while 31% expect sales to stagnate and only 4% said they expect them to drop.
Covering a number of major industries, the survey shows that Morocco’s textile industry is yet to catch up to other industries as 57% of businesses reported stagnating production and 51% reported stagnating sales.
Despite the overall stalling in business activities, the textile industry holds a higher-than-average Production Capacity Utilization Rate of 77%.
Businesses within Morocco’s agro-food business equally reported positive results, as 50% of respondents said that production rose in June, and 47% reported a rise in sales. The industry’s overall Production Capacity Utilization Rate settled at 70%.
Regarding the electronics industry, businesses have reported equally positive results, as 73% reported a rise in production and sales. The industry’s Production Capacity Utilization Rate is the highest across the board at 82%.
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