An analysis of this index shows a decline in almost all its various components. The households expressed concern about the overall standard of living. Their opinion on prospects for the standard of living deteriorated in the second quarter as compared both with the previous quarter and the same quarter of 2011. However, the HCP noted that economic data shows that the standard of living actually improved over the past quarter, though it has deteriorated since the second quarter last year.
Households also are not optimistic about the future of unemployment. In the second quarter of this year, 64.4 percent of households expect an increase in the number of unemployed. This indicator has deteriorated by 4.5 points from its level a quarter earlier and 2.6 percentage points compared to the same quarter last year.
The erosion of household optimism is also evident in their evaluations of their own financial situation, their intention to buy durable goods, and their savings. As Moroccans become less likely to be able to meet their needs using their income, they are forced to increase their use of debt. Less than 58 percent of households said that they adjust their expenditures to their income, with 36.6 percent intending to borrow or dip into their savings, and only 5.5 percent reporting adding to their savings. Only 82 percent of households expect to be able to spare money for their savings, a proportion that has held steady over the past months.
Similarly, a large portion (about 58 percent) of households felt that the time is not opportune to purchase durable goods, while 20.4 percent disagreed. This represents a decline in this indicator, which was down nearly 5 percentage points from the previous quarter, but is still slightly higher, compared to the same period last year.