Morocco’s industrial activity rebounds in July, driven by agri-Food and metallurgy

Morocco’s industrial sector showed clear signs of recovery in July 2025, with production and sales improving across nearly all branches, according to the latest business survey conducted by Bank Al-Maghrib.

The central bank’s findings, based on responses from 400 industrial firms, showed a broad-based rebound in activity, with the exception of the textile and leather sector, which continued to face stagnation.

The overall capacity utilization rate rose to 79%, marking a notable increase from the previous month. This improvement was underpinned by a rise in orders, particularly in the agri-food, mechanical, and metallurgical industries.

The agro-food sector emerged as a key driver of growth. Production levels increased, and the capacity utilization rate reached 74%. Sales expanded both domestically and internationally, while order books were reported to be above normal.

In contrast, the textile and leather sector presented a more mixed picture. While some sub-sectors experienced growth, the core textile industry remained sluggish. The sector operated at a relatively high-capacity utilization rate of 81%, but sales stagnated. A decline in orders was observed across most sub-segments, except for footwear.

The chemical and petrochemical industries recorded a modest increase in production, with a capacity utilization rate of 78%.

The mechanical and metallurgical sector stood out as the most dynamic. Production surged, and the capacity utilization rate climbed to 88%, the highest among all sectors surveyed.