JAKARTA (TheInsiderStories) – Indonesia’ Consumer Confidence Index (CCI) in February 2019 was recorded at 125.1, down from the index in the previous month which reached 125.5 and 127 points compared to December 2018.
Based on Bank Indonesia (BI) data, the declining of CCI occurred in respondents with expenditures of Rp4.1 million (US$292.86) to Rp5 million a month and aged 20-40 years. It was also driven by the lowering index in a number of regions.
The decreased also occurred in consumer perceptions of the current economic conditions, as indicated by the lowest index at 109.4 in Feb. from previous month 110.3. The declining due to a decrease in all its components, such as current income index, employment availability index and durable goods purchasing index.
Nevertheless, consumer confidence in economic forecasts rose, indicated by the index of economic condition from 140.6 in January to 140.9 in February. The increasing of consumer optimism towards economic conditions in the future is mainly supported by strong expectations of received income and the availability of employment in the next six months.
From the financial condition, the average proportion of consumer income used for consumption increased from 66.8 percent to 68.3 percent in February. The rising of consumption was followed by the decline in the average proportion of consumer saved income from 20.2 percent to 19.1 percent. While the average repayment ratio decreased from 13 percent to 12.5 percent.
The Bank predicted, consumption expenditure in the next three months will increase from the previous month, in line with the fasting month and ahead of Eid al-Fitr. This is indicated by the forecast for the next three months household consumption, which increased from 157.5 in the previous month to 161.8 in February 2019.
Furthermore, the central bank said, the consumers prices in the next three months also will rise compared to the previous month. This is indicated by the three-month price expectation index of 169, up from 166.7 in the previous month.
Pressures of price rising are expected to decline at the next six months in line with the maintained supply of consumer goods and the normal demand for goods and services.
Written by Staff Editor, Email: firstname.lastname@example.org