Governors of Bank Indonesia will make a decision on the seven days repo rate today - Photo: Special

JAKARTA (TheInsiderStories)– Bank Indonesia’s Consumer Confidence Index (CCI) dropped to 119.2 in October compared to to the previous month at 122.4 due the people is more pessimistic on the economic growth. This is reflected in the current Economic Condition Index which dropped to 106.2.

The lowering in CCI occurred in all groups of respondents’ expenditure levels, particularly in respondents with expenditures of Rp1 million (US$66.67) to Rp2 million per month. In terms of age, the decreasing in the CCI occurred in almost all ages of respondents, especially in respondents aged over 60 years.

Another reason of the declining was due to the cutting in all components of the compilation with the deepest decline in the Employment Availability Index. In October 2018, consumer confidence in employment availability also declined to 98.6 from 91.9 in the previous month

In the same month, the consumer confidence in the purchase of durable goods also dropped. Its reflected in the durable goods purchasing index, which jumped from 113.9 in September 2018 to 110.9 in October 2018.

Meanwhile, the Retail Sales Survey by the central bank released today, indicates remain positive in September 2018. BI said, the Real Sales Index (RSI) grew 4.8 percent in annual basis (YoY), but not as high as the August 2018 growth of 6.1 percent.

Retail sales performance is supported by retail sales in the clothing commodity subgroup and automotive fuel commodity groups. The retail sales are predicted to maintain positive growth in October 2018.

This is indicated by growth in the IPR which is predicted to grow 3.9 percent (YoY). Retail sales growth is predicted to be driven by sales of the clothing commodities sub-group and the motor vehicle fuel commodity group.

The survey results also indicate that price pressures at retail traders will increase slightly in the next three months. This indication is reflected in the upcoming 3-month General Price Expectation Index of 159.3 higher than the previous month’s survey results.

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