Majority of Households Report Declining Living Standards
New data from the High Commission for Planning (HCP) reveals a troubling trend among Moroccan households, with over 78% reporting a decline in their standard of living over the past year. This alarming statistic coincides with widespread fears regarding the labor market, with many anticipating rising unemployment and sustained high food prices. The HCP's Household Confidence Index has also seen a decline, falling to 60.1 points in the second quarter of 2026, a dip from 64.4 points in the previous quarter, although it remains above last year's figure of 54.6 points.
The survey highlights that a staggering 78.3% of households feel their living conditions have worsened within the last year, starkly contrasted by only 5.2% who report any improvement. This shift has pushed the balance of opinion concerning living standards into negative territory, now standing at an alarming minus 73.1 points. Furthermore, projections for the upcoming year are equally grim, with 51% of respondents expecting further deterioration in their living conditions, while a mere 9.3% are hopeful for improvement.
Concerns About Employment and Consumer Confidence
The data indicates that apprehensions surrounding the job market are pervasive, as 57.2% of households predict an increase in unemployment over the next year. Only a small fraction, 18.4%, hold an optimistic view that job opportunities will rise. Consumer confidence is similarly low, with 65.3% of households indicating that now is not an opportune time to invest in substantial items like furniture or appliances. In stark contrast, just 14.7% believe current conditions are suitable for making significant purchases.
Financial stability remains a pressing issue, as 58.7% of households assert that their income suffices for their expenses. However, a significant 38.7% admit to relying on savings or incurring debt to sustain their livelihoods. Only 2.6% report being able to save any portion of their income. Notably, attitudes toward personal financial prospects appear slightly less pessimistic, with 64.5% of respondents expecting their financial situation to remain stable over the next year, although 17.7% foresee deterioration.
Inflation continues to be a critical factor impacting consumer sentiment, particularly regarding food prices. The sentiment balance concerning food costs over the past year has plummeted to minus 97 points, signaling a widespread belief that prices have surged. Looking ahead, households expect little relief, as the indicator for future food price expectations stands at minus 75.2 points.
The Household Confidence Index encompasses seven key indicators that assess perceptions of living standards, employment, household finances, and major purchases, providing valuable insight into consumer sentiment across Morocco. This data underscores the challenges facing many families in the nation, highlighting the urgent need for economic interventions and support.
As reported by en.hespress.com.
