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

JAKARTA (TheInsiderStories) – Bank Indonesia (BI) noted the consumer confidence index stood at 126.4 in June 2019, down from 128.2 in the previous month. This was the weakest reading since March, as the index of economic outlook fell by 4.8 points (138.1 vs 142.9 in May) and the gauge measuring income expectations for the next six months declined 4.2 points (146.2 vs 150.4).

In addition, the measure of job availability expectations dropped 3.2 points (128.2 vs 131.4). Meanwhile, the measure of current income edged up 0.3 points (126.5 vs 126.2) and the index of current economic conditions rose by 1.2 points (114.7 vs 113.5).

Also, the gauge measuring job availability compared to six months ago increased 2.3 points (101.0 vs 98.7), with the index of whether it was a good time to buy durable goods going up 1 point (116.6 vs 115.6).

Based on written information released by the bank, the declines occurred in all respondents’ expenditure categories and part of the age of respondents. While by region, the decrease in the consumer confidence index occurred in six cities with the most profound drop in Surabaya 11.6 points, Denpasar 6.9 points, and Bandung 5 points.

Despite the decline in consumer confidence index, the current economic index was up 1.2 points to 114.7. It was driven by stronger consumer confidence in durable goods, confidence in current employment availability, and this month’s income compared to conditions six months ago.

Meanwhile, the consumer expectations index decreased to 138.1 from 142.9 from the previous month. The weakening of consumer expectations due to weaker expectations of business conditions, income, and availability of labor in the next six months.

The survey results also indicate a decline in price pressures in the next three months or September 2019. The decline was driven by the maintained supply of consumer goods and the smooth distribution of products.

Meanwhile, price pressures in the next six months or December 2019 are expected to increase due to increased consumer demand for goods and services towards the end of the year.

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