HCP: Moroccan household confidence index hits all-time low

Morocco’s households confidence index has reached its lowest point since tracking began in 2008, according to the most recent study. 

The latest report from the High Commission for Planning (HCP) reveals a decline in the index during the fourth quarter of 2023, following a slight improvement in the previous quarter.

In terms of numbers, the Household Confidence Index dropped to 44.3 points, down from 46.5 points in the previous quarter and 46.6 points in the same quarter of the previous year. 

For the year 2023, a significant 87% of Moroccan households reported a perceived deterioration in their living standards, while only 9.2% mentioned stability, and 8.3% noted improvement.

As a result, the Living Standard Index remained negative, showing a decrease of 2.83 points compared to the previous quarter’s 5.81-point decline and a 0.78-point decrease during the same quarter of the previous year.

More than half of Moroccan households (57.9%) expressed pessimism, expecting a decline in their living standards over the next 12 months. 

Only 2.33% anticipated stability, and 9.8% foresaw improvement. The High Commission for Planning noted a “stabilization of this index at  -0.49 points” compared to the previous quarter’s 7.41-point decrease and a 0.49-point drop during the same quarter of the previous year.

Regarding unemployment, 3.86% of households anticipated an increase in the next 12 months, contributing to a negative balance of 3.80 points. 

In terms of financial situations, 56% of households mentioned that their income covered their expenses during the fourth quarter of the previous year, but only 1.8% managed to save a portion of their income.

The report concluded that the overall financial situation index remained negative, reaching -40.3 points, compared to -40.2 points in the previous quarter and -42.1 points during the same quarter of the previous year.

Looking ahead, 59.8% of households expected a deterioration in their financial situation over the next 12 months, while only 18.3% anticipated improvement. 

Regarding savings, 90.4% of households expressed pessimism about their ability to save in the next 12 months, maintaining a negative balance of -80.7 points.

Nearly 98% of Moroccan households believed that food prices had increased over the past year, leading to a negative balance of -97.4 points. 

Looking ahead, 81.3% anticipated a continued rise in food prices, resulting in a negative balance of -77.6 points.