Moroccan Manufacturers Expect Sales, Production to Increase in 2nd Quarter of 2022

Rabat – The production and sales of manufacturing goods is set to increase in the 2nd quarter of 2022, according to Morocco’s central bank, Bank Al-Maghrib (BAM).

The bank reported that several industries saw an increase in production and sales during February 2022 from the previous month. Sales and production in the agri-food, chemistry and para-chemistry sectors declined.

Assessing data it collected throughout February, BAM stressed that “for the next three months, companies expect an improvement in terms of production and sales.”

The Production Capacity Utilization Rate (TUC) – that measures the percentage of an organization’s potential output that is actually being realized – would have stood at 71% in February 2022, up from 69% the previous month, the report noted.

A total of 31% of businesses indicated that they cannot forecast the future of their production, while 29% said they cannot predict potential sales changes for the coming three months.

BAM reports that production and sales have declined in the fields of agri-food and chemistry and para-chemistry, both domestically and abroad.

In February, agri-food companies reported that their production decreased by 21%, with the TUC standing at 66%.

Agri-Food manufacturers expect a stagnation of production and sales for the next three months, while 42% of companies in the food industry said the future evolution of production and sales for the following quarter is still blurry.

Sales in the chemistry and para-chemistry field have declined due to a decrease in shipments abroad, BAM said.

For the next three months, companies operating in this sector anticipate an increase in production and sales. However, one in five companies said they cannot predict their future development.

In the textiles and leather sector, companies reported an increase in production, with TUC amounting to 70%, and are optimistic about production and sales in the coming months.

Production in the electrical and electronic companies has increased with the TUC reaching 76%. Similarly, sales have increased in the local and foreign markets.

In the mechanical and metallurgical industries, the TUC reached 66% while sales saw an increase in the local and foreign market as well. Only 45% of companies expressed uncertainty regarding future evolution.