Morocco’s Consumer Confidence Hits Record Low Amid Economic Challenges

The household confidence index (HCI) stood at 60.6 points, compared to 65.6 points recorded the previous quarter and 74.8 points a year earlier. The result of this HCP survey for the third quarter of 2020 is far from flattering. From the point of view of the economists of the public institution responsible for the production, analysis and publication of official statistics, the indices demonstrate the lowest level ever reached since the beginning of the survey in 2008.

The components of the HCI (households’ perceptions of changes in living standards, unemployment, and their financial situation) have deteriorated considerably. Thus, more than half of the households (55%) stated during the survey that their standard of living over the past 12 months has deteriorated. 25.6% said they had maintained the same level, their conditions. 19.4% of Moroccans said they had seen an improvement.

"The balance of opinion on the past evolution of the standard of living remained negative, at minus 35.6 points against minus 24.8 points in the previous quarter." Although several national and international institutions envisage a change in the national economy in 2021, 41.5% of households anticipate a deterioration in their standard of living over the next 12 months. 34.3% of them will be able to maintain their level and 24.1% aim for a change.

Regarding employment, 87.1% of households expect an increase in unemployment. For the opportunity to purchase durable goods, 74.3% of households believe that the time is not right to make purchases of durable goods. Speaking of the financial situation, 60.4% of households believe that their income covers their expenses while 35.6% are in debt and 4.1 manage to save, the HCP information note pointed out.