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Rabat – As Morocco’s economy enters a phase of slow recovery, Moroccan businesses are more optimistic about the prospects of improved activities, with 36% of businesses reporting they expect a rise in sales over the next quarter.
A monthly survey conducted in May by Morocco’s central bank, Bank Al Maghreb (BAM), found that the majority of business owners said they are optimistic about the upcoming three months. The report specified that 36% of the surveyed businesses are expecting sales to increase, while 34% are expecting production to increase.
The survey shows that at the end of May, the Production Capacity Utilization Rate (PCUR) – a measure of how much the economy produces against how much it can potentially produce – settled at 73%.
While businesses expressed hope for the next three months, at the end of May, 35% of businesses report stagnating demand, 33% report a rise in demand, and 32% a drop in demand.
The survey findings suggest that production experienced notable increases, especially in sectors such as “chemical and petrochemical,” “mechanical and metallurgical,” and “electric and electronic.” However, the “agri-food” sector witnessed stagnation, while the “textile and leather” sector faced a decline in production, the report detailed.
In terms of sales, both the domestic and foreign markets reported stagnation across all sectors. Specifically, the “mechanical and metallurgical” and “electric and electronic” sectors saw modest sales growth, while the “agri-food” sector experienced no significant changes.
On the other hand, the “textile and leather” sector as well as the “chemical and petrochemical” sector recorded declines in sales.
Examining order books, the survey found that they were below normal levels in all sectors except for the “electric and electronic” sector, where order levels remained within the normal range.
