Morocco: Manufacturing sector shows recovery signs in July survey
Morocco’s industrial sector demonstrated improvement in July 2025, with production and sales advancing across most branches, according to Bank Al-Maghrib’s latest monthly conjuncture survey. The recovery signals strengthening economic momentum despite persistent challenges in specific manufacturing segments.
Production and sales increased in all industrial branches except textiles and leather, where sales remained stagnant. The capacity utilization rate reached 79 percent, marking a slight increase from the previous month. This improvement reflects growing demand and enhanced operational efficiency across key manufacturing sectors.
Order volumes registered growth driven by advances in agro-food and mechanical-metallurgy industries. Chemistry and para-chemistry sectors maintained stable orders while textile and leather experienced declines. Order book levels remained below normal overall, though agro-food industries reported above-normal levels and mechanical-metallurgy achieved normal status. Textile-leather and chemistry-para-chemistry sectors continued experiencing below-normal order books.
Looking ahead three months, industrialists anticipate production and sales increases across all branches except textiles and leather, where stagnation expectations persist. This forward-looking sentiment suggests sustained recovery momentum despite uneven sectoral performance.
The survey results indicate Morocco’s industrial base continues adapting to post-pandemic market conditions while navigating global supply chain adjustments. Agro-food and mechanical-metallurgy sectors emerge as growth drivers, offsetting weakness in traditional textile manufacturing. The 79 percent capacity utilization rate, while improved, suggests room for further expansion as demand conditions strengthen.
These trends align with Morocco’s broader economic diversification strategy, emphasizing value-added manufacturing and reduced dependence on traditional industries. The differentiated sectoral performance highlights ongoing structural shifts within Morocco’s industrial landscape as companies position for future competitiveness.