Consumer Confidence Index Decline in March 2019
Bank Indonesia assessed the Consumer Confidence Index in April 2 was 128.1, higher than 124.5 in the previous month. Photo by Bank Indonesia.
JAKARTA (TheInsiderStories) Consumer confidence about economic conditions in March 2019 was recorded to decline from the previous month. This is reflected in the Consumer Confidence Index originating from the Consumer Survey released by Bank Indonesia.
From the survey, the Consumer Confidence Index in March 2019 was 124.5, lower by 0.6 points from February 2019. This decline was due to consumer perceptions of current conditions and consumer expectations of economic conditions in the next 6 months that were not as strong as the previous month.
While quarterly, the average consumer confidence index in the first quarter of 2019 was 125.0, an increase compared to 123.0 in quarter IV-2018.
The weakening of the Consumer Confidence Index in March 2019 occurred in almost all respondents’ expenditure categories and most of the respondents’ age categories. While by region, a total of 8 survey cities experienced a decline in the Consumer Confidence Index in March 2019, with the deepest decline occurring in Makassar City (-11.9 points), followed by Pangkal Pinang (-9.4 points) and Bandar Lampung (-8, 0 points).
As of March 2019, consumer perceptions of the current economic conditions also weakened from the previous month, reflected in the Current Economic Conditions Index in March 2019 of 108.9, lower than 109.4 in February 2019. The decline in the Economic Condition Index was caused by a decline in consumer confidence in purchasing durable goods and a decrease in current employment availability compared to conditions 6 months ago.
Spatially, the weakening of the Economic Conditions Index occurred in 9 cities with the deepest decline in Makassar (-9.2 points) followed by Pangkal Pinang (-7.8 points) and Bandar Lampung (-6.4 points).
Consumer perceptions of the forecast of future economic conditions also weakened from the previous month, reflected in the Economic Conditions Expectation Index in March 2019 of 140.2, lower than 140.9 in the previous month.
The decline in consumer confidence for the future economic conditions was caused by a decline in consumer expectations of income and availability of labor in the next 6 months. Spatially, the decline in Economic Conditions Expectation Index occurred in 12 cities with the deepest decline in Makassar.
The survey results also indicate that the pressure of rising prices is expected to increase in the next 3 months (June 2019), mainly influenced by the increase in demand for goods and services during the Eid-ul-Fitr period.
Meanwhile, price pressures in the next 6 months (September 2019) are expected to decline supported by consumer perceptions of the maintained supply of household consumer goods and the increasingly smooth distribution of goods.
Written by Staff Editor, Email: theinsiderstories@gmail.com