Morocco expects higher industrial, energy and construction output in third quarter of 2026

Morocco’s production outlook is improving, but companies continue to face pressure from supplies and cash. The High Commission for Planning expects manufacturing, energy and construction to expand in the third quarter of 2026 after gains in the previous quarter.

Manufacturing activity benefited from stronger production of automobiles, electrical equipment and chemical products. Paper and textiles moved in the opposite direction. Employment remained stable, while factories used 75% of their production capacity.

Supply problems remain widespread. Some 34% of manufacturing companies reported difficulties obtaining raw materials, especially imported supplies. Nineteen percent described their cash position as difficult, rising to 27% among clothing manufacturers.

Extractive production fell as phosphate output declined, even though selling prices increased, and employment in the sector also decreased. Energy production rose because electricity and gas generation and distribution improved. Environmental-sector production remained stable.

Construction activity also increased, supported by building construction and specialized construction, while civil engineering remained unchanged. Employment rose and capacity use reached 75%. Fourteen percent of construction companies reported supply difficulties, and 28% said their cash position was difficult.

For the third quarter, companies expect manufacturing growth led by food, chemical and non-metallic mineral products. They anticipate declines in automobiles, clothing and paper, but a recovery in phosphate production. Energy and construction are also expected to grow, while the environmental sector is forecast to remain stable.