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Agadir – Morocco’s industrial sector entered 2026 with a mixed sectors’ performances, according to the latest monthly survey conducted by Bank Al-Maghrib.
The central bank’s January assessment points to overall slowdown in production and a noticeable decline in sales across several industries, reflecting an uncertain business climate at the start of the year.
The capacity utilization rate (TCU) stood at 77%, suggesting that factories are operating below their full potential. Behind this national average, however, sectoral trends varied significantly.
Agro-food sector shows resilience
The agro-food industry emerged as one of the more dynamic segments in January. The survey showed that production increased and capacity utilization reached 70%. Sales improved as well, largely driven by stronger domestic demand, even though exports declined.
New orders rose sharply, pushing order backlogs above normal levels, the analysis noted as a sign of sustained activity. Industrial operators in the sector expect this positive momentum to continue over the next three months, anticipating further growth in both production and sales.
However, more than a quarter of companies in the agro-food sector reported “uncertainty regarding the future evolution of production and sales,” the survey said.
Textile and leather production weakens
The textile and leather industry experienced a more challenging month. Production declined in most sub-sectors, with the exception of the textile industry, which recorded some growth. Capacity utilization was relatively high at 82%, but this did not translate into stronger performance overall.
Sales increased slightly, yet clothing and fur activities remained stagnant. Meanwhile, new orders declined, leaving order books below normal levels.
The survey stated that looking ahead, industrial leaders expect production to remain flat in the coming months, even if sales show some improvement. Notably, 41% of companies in this sector expressed concerns about future production trends, one of the highest uncertainty levels among all industries surveyed.
Chemical and parachemical industries face setback
The chemical and parachemical industries also saw production contracts in January. Capacity utilization stood at 76%, while sales dropped in both domestic and export markets.
New orders weakened, and order backlogs fell below normal levels. Despite these difficulties, businesses in the sector remain cautiously optimistic.
Many expect production and sales to pick up over the next three months, suggesting confidence in a potential short-term recovery, the survey showed.
Mechanical and metallurgical industries maintain momentum
In contrast, the mechanical and metallurgical industries posted stronger results. Production increased and capacity utilization reached 87%, the highest among the surveyed sectors.
However, the Bank Al-Maghrib survey indicated sales overall remained stagnant. While exports improved, local sales declined, offsetting gains abroad. Encouragingly, new orders rose and order backlogs exceeded normal levels.
Business leaders in this segment are broadly optimistic about the next quarter, forecasting increases in both production and sales. Yet nearly one-third of firms acknowledged uncertainty regarding future developments.
The survey, conducted between February 2 and 26, achieved a 61% response rate. Despite January’s mixed results, most sectors anticipate a modest recovery over the next three months, particularly in production and sales. The textile and leather industry remains the main exception, with stagnation expected to continue.
