Bank Indonesia reported the Consumer Confidence Index declined to 118.4 in October from 121.8 in the previous month -Photo: Special

JAKARTA (TheInsiderStories) – The latest survey conducted by Bank Indonesia showed the Consumer Confidence Index declined to 118.4 in October from 121.8 in the previous month. This was the weakest reading since February 2017, the central bank said today (11/05).

The survey also showed a weakening in the index of current economic conditions which fell 2.7 points to 104.8 and the index of expectations of economic conditions which dropped 4.2 points to 136.2.

The decline in the consumer expectations index was caused by the lower-income index which dropped 2.5 points to 146.4, and the employment availability index fell 3.7 points to 118.9, the bank said.

Meanwhile, the weakening of the expectation index for economic conditions was caused by a decline in the business activity expectation index in the next six months which dropped by 6.3 points from the previous month to 130.8, it showed.

The survey results also indicate rising price pressures in the coming three and six months, namely in January and April 2020. It is indicated from the index of price expectations for the next three and six months which is higher than the previous month.

The upward pressure on prices over the next three months is influenced by the estimated demand for goods and services which increased in early 2020 which shows the number 176.2 or increased compared to September 2019 which amounted to 175.3.

Meanwhile, the upward pressure on prices for the next six months is influenced by the increased demand for goods and services before the fasting month at the end of April 2020 which shows the number 174.1 or up from the previous month which was 170.6.

The consumer index is a factor that affects economic growth. Indonesia’s annual economic growth lowering to 5.02 percent in the third quarter (3Q) of 2019 after a 5.05 and 5.07 percent growth in the second and first quarter, also lower than 5.17 percent in the same quarter last year, Statistics Indonesia has reported today.

However, cumulatively, Indonesia’s gross domestic product reached 5.04 percent, expanded 3.06 percent quarter-on-quarter in the three months to September 2019, the agency noted.

The growth still under the previous projected of finance minister Sri Mulyani Indrawati at the level of 5.05 percent, or same as in a 2Q, which indicates the economy is growing stagnant.

She hopes that growth in household consumption will still be around 5 percent. The ballast of the growth, the minister noted, comes from export and investment growth.

To note, in the 1Q of 2019 Indonesia’ economy recorded a growth of 5.07 percent. Then in the 2Q of 2019, the economy grew by 5.05 percent. For the first semester of 2019, the nation’s economy grew by 5.06 percent compared to last year (YoY).

Written by Staff Editor, Email: theinsiderstories@gmail.com