Economic activity: Cash unfavorable and difficult context, note … – Media 24

 In its latest economic survey on the last quarter of 2015, Bank Al Maghrib notes a deceleration of economic activity.
 
 

  It also notes the difficult production conditions for businesses and a preponderance of self-financing face credit. Details.

 The investigation of the central bank sounded the alarm on the climate of business deemed “unfavorable” by actors of all industries except food that seems, again, hold its own play.

 Indeed, the agri-food industry consider the business environment in their industry as “normal”. “Electrical and electronics” sector also seems to wear quite well, since 88% of its industrial surveyed by Bank Al Maghrib call activity level of “normal” against 12% who consider the “difficult”.

 Bank Al Maghrib also notes production conditions characterized by a “difficult” supply and stock levels of raw materials and semi-finished products “below normal”. The survey also notes stagnating numbers of employees.

 That said, supply difficulties did not concern the branch of the food industry and the electrical and electronics. In the industry “chemistry and para-chemistry”, the Central Bank raises a supply difficulties especially in its sub-branch “coking and refining”. However, the automotive industry also seems to be doing better on this aspect than other industries of the branch “mechanics and metallurgy.”

 Furthermore, the stagnation of the workforce during the fourth quarter 2015 covers a decline in the food, chemical and parachemical, and the textile and leather, combined with an increase in the “mechanics and metallurgy” branch. For the first quarter 2016, the number of the latter would continue to grow according to estimates of industrial interviewed, while the numbers of branches “chemistry and para-chemistry” and “electrical and electronic” accuse down.

 In addition, unit production costs have steadily increased from one quarter to another, the Central Bank notes. A general increase in all sectors, except in the mechanical and metallurgical industries where they would be down, thanks to the regressions recorded in the cost of non-energy commodities at this branch.

 Furthermore, all branches described their cash “difficult” , due to the negative impact caused mainly by the reduction of time granted by suppliers, accentuation difficulties recovery and the increase in non-financial burdens. Overall sales have no impact on cash businesses.

 On the other hand, the Central Bank reports that 84% of respondents report having access “normal” bank financing, against 14% who consider the “difficult”. An improvement over the previous quarter, when these proportions were 70% and 27% respectively. The cost of credit would have been up in the “chemical and para-chemical” industries, “textiles and leather” and “mechanical and metallurgical.” However, it would have declined in the food and stagnated in the electrical and electronics.

 In addition, capital expenditures were up in all branches, except “textiles and leather”. These expenses should, industrial surveyed, increase over the first quarter and would be self-financed to the tune of 69%.