Household morale improves in Morocco despite continued cost pressures

Household confidence in Morocco improved significantly during the first quarter of 2026, according to a recent note released by the High Commission for Planning. The findings show that the household confidence index rose above levels recorded in both the previous quarter and the same period in 2025.

The index reached 64.4 points in the first quarter of 2026, compared with 57.6 points in the fourth quarter of 2025 and 46.6 points in the first quarter of 2025, reflecting what the statistical authority described as a clear improvement in consumer sentiment amid stronger economic activity at the start of the year.

Despite the positive trend, the index remains below the 100-point threshold, indicating that negative perceptions still dominate in several areas, even as the overall trajectory points toward recovery.

On living standards, 75.1% of households reported a deterioration over the past 12 months, while only 5.8% said they had seen an improvement. The balance for this indicator stood at minus 69.3 points, slightly better than minus 72.5 points in the previous quarter.

Looking ahead, 16.4% of households expect an improvement in living standards over the next year, which helped improve the forward-looking balance to minus 28.8 points, compared with minus 39.5 points previously.

Perceptions of unemployment also showed some improvement. While 57.9% of households still expect unemployment to rise, the related index improved to minus 34.7 points, compared with minus 47.7 points in the previous quarter and minus 73.4 points a year earlier.

The survey also highlights continued financial pressure on households. About 37.5% reported relying on borrowing or drawing down savings to cover expenses, while only 2.5% were able to save part of their income. However, perceptions of past financial conditions improved slightly, with the balance reaching minus 36.7 points.

Expectations for future financial conditions are more optimistic. Around 21.1% of households expect an improvement in their financial situation over the next 12 months, pushing the balance into positive territory at 5.8 points, up from minus 4.2 points in the previous quarter.

In contrast, most households still view current conditions as unfavorable for purchasing durable goods, with 66.9% expressing this view.

Food prices remain a major concern, as 93.3% of households said food costs increased over the past year. Nearly 78.9% expect further increases in the future, leaving the related index at a deeply negative level of minus 76.5 points.

Regarding saving capacity, 12.1% of households said they expect to be able to save in the coming year, improving the indicator to minus 75.7 points, although overall sentiment remains largely negative in this area.