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Moroccan Industrial CEOs Expect Production Stability

Moroccan Industrial CEOs Expect Production Stability

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The order books of the processing industry sector are considered normal by 70 percent of the heads of enterprises, according to the results of the latest survey conducted by the High Commission for Planning (HCP) for the second quarter of 2017. The production capacity utilization rate (UCS) in this sector was of 75 percent, at a time when production increased by 43 percent in the industries mentioned in the same survey.

This development, the HCP noted, was the result of an increase in production in the branches of the chemical, automobile, and the food industries, as well as a fall in production in the branches of metallurgy.

The extractive industry appears to be less dynamic than the manufacturing sector, with a UCS set at 66 percent during the same period. According to the HCP, the production of this sector had displayed an increase, according to 89 percent of the interviewed CEOs. As for the order books, more than 95 percent of the heads of companies judge them at a normal level.

In the energy industry, the UCS was set at 87 percent in Q2FY17. The output of this sector increased by 87 percent according to the surveyed CEOs. For the environmental industry, the HCP noted a  66 percent UCS rate and an 81 percent increase in the number of entrepreneurs, due to a sustained growth in the water capture, treatment, and distribution activity.

Order books are nevertheless considered normal by all CEOs in the energy sector and below 73 percent by those in the environmental industry.

Concerning the construction sector, 50 percent of the bosses questioned by the HCP believe that activity has been stable throughout the same period. According to them, this stability is mainly due to a decline in activity in the building construction and civil engineering sectors, as well as the increase of activity in the specialized construction sector. Order books are judged to be at a normal level by 60 percent of construction professionals.

The HCP survey also looked at the expectations of business leaders across all sectors. For example, in the manufacturing sector, 39 percent of employers expect production to stagnate in the third quarter of 2017, while only 30 percent expect an increase.

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