Consumer confidence flat in May: BI<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Consumers continued to be pessimistic about the country's
\neconomic prospects despite the improving macroeconomic conditions
\nand the stronger rupiah, a survey revealed.<\/p>\n
A survey conducted by Bank Indonesia, quoted by Antara, shows
\nthat the Consumer Confidence Index (CCI) was hardly changed in
\nMay at 73.5 compared to 73.4 in April.<\/p>\n
The central bank said a number of other indices also failed to
\nshow any significant progress during the month, further
\nindicating a negative outlook on the economy on the part of
\nconsumers.<\/p>\n
Bank Indonesia said that consumer expectations regarding the
\ncountry's economy were still poor, which was reflected in the
\nConsumer Expectation Index which in May stood at 83.3 compared to
\n85.1 in April.<\/p>\n
\"Consumers are still pessimistic about the economy although it
\nhas shown improvement,\" the central bank said.<\/p>\n
Bank Indonesia surveyed 2,700 households in nine big cities;
\nJakarta, Medan, Bandung, Surabaya, Semarang, Makassar, Palembang,
\nBandar Lampung and Banjarmasin.<\/p>\n
While consumers were pessimistic about the country's economy,
\nthey were confident that the rupiah would strengthen over the
\nnext six to 12 months, which was reflected in the rise in the
\nrupiah's Exchange Rate Index in May to 107.7 from 102.7 the
\nprevious month.<\/p>\n
The survey also showed that consumers were still reluctant to
\nbuy durable goods as indicated in the Consumer Spending Index,
\nwhich rose only slightly to 62.8 from 60.5 the previous month.<\/p>\n
Most respondents surveyed said that the rise in the prices of
\ngoods and their low purchasing power were the main reasons for
\nthem not purchasing durable goods.<\/p>\n
According to the central bank, consumer expectations of rises
\nin the prices of goods are still high despite the strengthening
\nof the rupiah against the dollar.<\/p>\n
The index measuring family income was slightly better at 108.3
\nin May, up from 107 the previous month, with 35.3 percent of
\nrespondents saying their family income was improving, while 25.1
\npercent claimed their income was declining.<\/p>\n
As for unemployment, 85.3 percent of the respondents said the
\nunemployment rate was still high that month.<\/p>\n
The index measuring expected inflation, however, was down to
\nfive from 10.8 in April. Inflation in May was recorded at 0.8
\npercent, higher than the deflation of 0.24 percent in April.<\/p>\n
The survey, however, contradicts another survey conducted by
\nThe Danareksa Research Institute, which indicated that consumer
\nconfidence continued to rise that month.<\/p>\n
According to Danareksa, the Consumer Confidence Index rose in
\nMay for the fourth consecutive month in a row, as consumers
\ngained optimism about the ongoing upturn in the Indonesian
\neconomy.<\/p>\n
The Danareksa results showed the Consumer Confidence Index
\n(CCI) up 0.5 percent at 99.3 percent, with the Present Situation
\nIndex (PSI) moving up to 82.7 from 81.3 in April.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/consumer-confidence-flat-in-may-bi-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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