Bank Al-Maghrib: 22% of Moroccan industrial firms say business climate is unfavorable

More than one in five Moroccan industrial companies considered the business climate unfavorable in the third quarter of 2026, as rising production costs and weaker employment weighed on the sector, according to Bank Al-Maghrib.

The central bank’s quarterly business survey found that 69% of industrial firms described conditions as normal, while 22% considered them unfavorable.

Textile and leather manufacturers reported the most difficult conditions, with 27% describing the business climate as unfavorable. The share stood at 25% among food-processing companies and 19% in the chemical and semi-chemical industries.

Mechanical and metal industries reported comparatively better conditions, with 60% of companies describing the business climate as normal and 27% as favorable.

Rising production costs remained a key source of pressure, with 57% of industrial firms reporting an increase in unit costs during the quarter. The share reached 58% in textiles and leather, 57% in food processing, 56% in chemical and semi-chemical industries, and 55% in mechanical and metal industries.

Employment conditions also weakened. While 64% of companies maintained stable staffing levels, 22% reported workforce reductions. Food processing was an exception, with 33% of firms reporting an increase in employment.

Companies expect hiring to decline further in the fourth quarter, with all industrial branches forecasting lower staffing levels.

Financing and cash-flow conditions

Access to bank financing was generally considered normal, particularly among companies in mechanical and metal industries and chemical and semi-chemical manufacturing.

Food-processing firms, however, reported difficulties obtaining loans, while textile and leather companies described access to financing as easy.

Borrowing costs remained unchanged for 90% of industrial firms, while 9% reported an increase. The pressure was more pronounced in mechanical and metal industries, where 26% of companies said borrowing costs had risen.

Cash-flow conditions were considered normal by 84% of firms, while 14% reported difficulties. Textile and leather manufacturers faced the greatest strain, with 19% describing their financial position as difficult.

Investment outlook

Investment spending increased in most industrial branches during the third quarter, with textiles and leather the only sector to report a decline.

Companies financed around 75% of their investment through their own funds, with bank loans accounting for the remaining 25%.

Over the next three months, firms expect investment to increase across most industrial sectors, although textile and leather manufacturers anticipate a further decline.