The High Commission for Planning (HCP) indicated that household morale continued its downward trend in the first quarter (Q1) of 2023 to reach its lowest level since the start of the survey in 2008.
According to the results of the permanent household economic survey, the household confidence index (ICM) thus stood at 46.3 points, instead of 46.6 points recorded the previous quarter and 53.7 points a year earlier, indicates the HCP which has just published an information note on the results of this survey.
And to recall that the components of the ICM relate to the perception by households of the evolution of the standard of living, unemployment, the opportunity to make purchases of durable goods and their financial situation.
Thus, 85.3% of households declare, in Q1-2023, a deterioration in the standard of living over the last 12 months, 10.9% maintaining it at the same level and 3.8% an improvement. The balance of opinion on this indicator stands at minus 81.5 points, down both from the previous quarter and from the same quarter of the previous year when it was at minus 78.0 points and 66.9 points respectively.
Over the next 12 months, 50.7% of households expect the standard of living to deteriorate, 37.4% to remain at the same level and 11.9% to improve. The balance of opinion on the future evolution of the standard of living remained negative at minus 38.8 points, against minus 43.0 points in the previous quarter and minus 21.5 points in the same quarter of last year.
In addition, 85.8% versus 4.4% of households expect unemployment to rise over the next 12 months. The balance of opinion thus remained negative at minus 81.4 points against minus 79.6 points a quarter earlier and minus 82.8 points a year earlier.
Regarding the purchase of durable goods, 79% against 9.2% of households consider that the time is not right to do so. The balance of opinion for this indicator remained negative with minus 69.8 points against minus 70.3 points in the previous quarter and minus 66.7 points in the same quarter of the previous year.
With regard to the financial situation, 51.2% of households believe that their income covers their expenses, 45.4% say they are in debt or draw on their savings and 3.4% say they save part of their income. The balance of opinion on the current financial situation of households thus remained negative, at minus 42.0 points against minus 42.1 points the previous quarter and minus 43.3 points a year earlier.
As for the evolution of their financial situation over the last 12 months, 61.2% against 4.0% of households consider that it has deteriorated. This perception thus remains negative, with a balance of opinion of minus 57.2 points against minus 53.0 points in the previous quarter and minus 50.9 points in the same quarter of the previous year.
Regarding the evolution of their financial situation over the next 12 months, 18.9% of households against 24.1% expect it to improve. The balance of opinion for this indicator thus settled at minus 5.2 points against minus 7.7 points a quarter earlier and 8.3 points a year earlier, estimates the HCP.