Casablanca — Morocco’s industrial sector reported a generally stable business climate in the first quarter of 2026, though companies continued to face pressure from weak demand, rising input costs, and stronger competition from the informal sector, according to Bank Al-Maghrib’s latest quarterly business survey.
The survey found that 68% of manufacturers described the business climate as “normal,” while 22% considered it unfavorable. Conditions varied across sectors. In the chemicals and para-chemicals industry, 80% of firms said the climate was normal and 13% described it as favorable. In textiles and leather, 31% of companies said conditions were unfavorable.
Supply conditions also remained relatively stable overall. Around 73% of companies said access to raw materials was normal, while 26% described it as difficult. The agro-food sector appeared to face the most pressure, with nearly half of firms in the sector reporting difficult supply conditions.
Employment levels increased overall during the first quarter, driven mainly by gains in mechanics, metallurgy, and chemicals. But companies expect staffing levels to decline in the second quarter, especially in the chemicals and para-chemicals sector. Textile and leather firms, meanwhile, anticipate an increase in hiring.
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Production costs rose across all industrial branches during the quarter. Despite that, most companies said their financial situation remained manageable. About 87% described their cash flow position as normal, while 9% said it was difficult. In mechanics and metallurgy, 11% even considered their treasury situation comfortable.
Access to bank financing was largely unchanged. Three quarters of surveyed firms said financing conditions were normal, while 18% found access easy. Companies in chemicals, para-chemicals, textiles and leather reported the most favorable financing conditions.
Credit costs also remained stable for most businesses. Around 90% of companies said borrowing costs had stagnated, although some firms in mechanics, metallurgy, and textiles reported increases.
Investment spending increased overall during the quarter, particularly in agro-food and chemicals. Those investments were financed mainly through companies’ own funds, which accounted for 73% of spending, while bank credit covered the remaining 27%. Industrial firms also expect investment spending to continue rising over the next three months across all sectors.
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