While Morocco’s broader manufacturing landscape began to signal a hopeful recovery in early 2026, the textile and leather industry has struck a sharply discordant note. According to the latest monthly survey from Bank Al-Maghrib (the central bank) released in March 2026, this strategic sector recorded the weakest performance among all manufacturing streams. Global economic uncertainty and a cooling in demand appear to have struck the heart of an industry that remains a critical export pillar for the Kingdom.
Central bank data reveals a sobering reality: 45 percent of textile firms reported a significant drop in production during March. Conversely, only 12 percent saw an increase, resulting in a sharp negative balance of minus 34. This performance places textiles as the most prominent underperformer compared to the mechanical and metallurgical industries, which led the industrial charge with a capacity utilization rate of 88 percent. In contrast, the textile sector limped behind with a utilization rate of just 77 percent.
This sluggishness is rooted in stubbornly low demand across both domestic and international markets. The survey indicated that 40 percent of companies experienced a decline in sales, while new orders fell across nearly all textile sub-sectors. "Order books were described as below normal across all activities," the Bank Al-Maghrib report stated. While the leather and footwear segments showed slightly more resilience than fabric production, the industry as a whole is firmly in a worrying state of contraction.
Local economic analysts, featured in domestic media outlets, pointed out that Morocco’s heavy reliance on European markets is proving to be a double-edged sword as the continent faces ongoing economic volatility. Consequently, textile manufacturers are operating in a state of high uncertainty. Approximately 37 percent of producers admitted they have no clear visibility regarding production plans for the next three months, while more than half—54 percent—were unable to provide any estimates for future sales.
The persistent uncertainty surrounding this labor-intensive sector raises concerns about job stability if the contraction trend continues through the first half of 2026. As the Moroccan government pushes for industrial modernization, the slump in the textile and leather industry serves as a stark reminder that global supply chain challenges and weakening international consumer purchasing power remain formidable hurdles that must be addressed to protect the country's overall manufacturing momentum.
