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 (CCI) declined to 123.1 in August from 124.8 in the previous month. This was the weakest reading since November last year, as the measure of job availability expectations decreased 3.4 points to 122.4 from125.8 in July.

While the measure of current income dropped 4.9 points to 118.4 from 123.3 in the previous month. Then the index of current economic conditions fell by 0.9 points to 110.3, from 111.2 months earlier. Also, the gauge measuring economic outlook fell by 2.4 points to 136.0 from138.4 in July.

The gauge measuring income expectations for the next six months decreased 3.2 points to 147.0 from 150.2 in the previous month. Conversely, the index of job availability compared to six months ago increased 1.9 points to 98.5 from 96.6, with the index of whether it was a good time to buy durable goods went up 0.3 points to 113.9 from 113.6.

But, the central bank assesses consumer optimism is maintained, mainly supported by consumer perceptions that remain positive to current economic conditions.

Consumer perception is supported by confidence in the availability of jobs and the purchase of durable goods. In addition, consumer expectations of economic conditions going forward are also still at an optimistic level, although not as strong as the previous month, especially on estimates of income and employment availability in the next 6 months.

The survey results also indicate that the upward pressure on prices in the next 6 months (February 2020) is expected to decline. This is indicated by the decline in the coming 6-month price expectation index from 174.9 in the previous month to 170.0. The decrease was supported by the availability of an adequate supply of goods and the smooth distribution of goods logistics activities.

Further review, in August almost all groups of respondents’ expenditure levels experienced a decline. While in terms of age, the decline also occurred in almost all age groups of respondents, especially in respondents aged 51-60 years.

Spatially, as many as 10 cities implementing the survey decreased while in 8 other cities increased from the previous month. The deepest decrease occurred in Banten (-9.3 points) followed by Surabaya (-8.6 points), while the city that experienced the biggest increase was Medan (13.5 points).

Written by Lexy Nantu, Email: lexy@theinsiderstories.com