Morocco’s manufacturing sector remained mostly flat in the first quarter of 2026, while construction activity expanded and phosphates production declined, according to a quarterly business survey published by Morocco’s statistics agency (HCP).
Manufacturing output was stable during the quarter, supported by growth in the chemical, electrical equipment manufacturing, and clothing production. Those gains were offset by weaker activity in the automotive sector, rubber and plastics manufacturing, and metal products, the survey found.
In manufacturing, capacity utilization was around 74%, while employment remained broadly unchanged. The sector also continued to face supply-chain pressures. 43% of companies reported difficulties obtaining raw materials, particularly imported inputs.
20% of manufacturers described their cash-flow situation as “difficult,” while nearly 30% of textile and leather producers described themselves in that category.
Morocco’s extractive industry contracted during the quarter as phosphates production declined, according to business leaders surveyed by the HCP. Companies also reported lower sales prices, although employment in the sector increased.
By contrast, the energy sector grew, driven by increased activity in electricity, gas, steam and air-conditioning production and distribution. Sales prices increased, although employment declined.
Environmental industries, including water capture, treatment, and distribution, remained broadly stable, with companies reporting normal orders on their books and stable employment levels.
Construction emerged as one of the strongest-performing sectors during the quarter. Activity increased on the back of growth in building construction and specialized construction works, while civil engineering activity remained stable. Capacity utilization in the sector reached 72%, and employment increased.
However, challenges persisted. Nearly 23% of construction companies reported difficulties sourcing raw materials, while 30% said their financial situation was difficult.
Looking ahead, manufacturers expect production to increase in the second quarter, supported by stronger activity in food processing, chemicals, automotive manufacturing, and electrical equipment production. Employment is expected to remain broadly stable.
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