Consumer confidence slips in April: Danareksa survey<\/p>\n
JAKARTA (JP): After two months of consecutive gains, consumer
\nconfidence dropped in April due to continuing infighting among
\nthe country's political elite, according to a monthly consumer
\nconfidence survey conducted by state PT Danareksa Securities.<\/p>\n
The securities firm said the drop might signal that consumers
\nwere getting tired of the \"unstoppable momentum of domineering
\npolitical issues\".<\/p>\n
\"This near boredom may undermine the progress of economic
\nrecovery, as we expect political tension may even heighten
\nleading up to the General Session in August,\" Danareksa said,
\nreferring to the annual session of the People's Consultative
\nAssembly (MPR) in which President Abdurrahman Wahid will deliver
\na progress report on his administration.<\/p>\n
\"Nevertheless, it remains too early to conclude that there is
\na long-term erosion in consumer optimism based only on the April
\nresults,\" the company said, pointing out that the drop only
\nunderpinned the fragility of consumer confidence since a slip was
\ncommonplace for any economy that was at the early stage of a
\nbusiness cycle upswing.<\/p>\n
The consumer confidence survey is based on a representative
\nsample of 1,700 households across six main areas.<\/p>\n
Danareksa said the sample was scientifically selected to
\naccurately represent Indonesian consumer characteristics,
\ndemographically and economically.<\/p>\n
\"Consumer outlook for the next six months is less optimistic
\nthan in the earlier survey,\" the investment company said.<\/p>\n
The survey also found that the percentage of respondents who
\nfeel that jobs are plentiful increased slightly to 26.5 percent
\nin April from 25.7 percent in March, while the proportion who
\nconsider job opportunities to be scarce is 51.5 percent, down
\nfrom 52.8 percent.<\/p>\n
\"The decrease in consumer pessimism toward the job market may
\nindicate an upturn in economic activity,\" Danareksa said.<\/p>\n
Business sentiment<\/p>\n
Meanwhile, Danareksa said in its February-March business
\nsentiment survey that most respondents viewed that the overall
\nmacro and micro economic conditions were \"presently in good
\ncondition\", which was a major improvement compared to previous
\nresults.<\/p>\n
Danareksa said the stronger business confidence was present in
\nall sectors.<\/p>\n
The business sentiment survey is conducted over two months and
\ninvolves some 550 representative samples.<\/p>\n
\"Most CEOs (chief executive officers) also continued to claim
\nthat companies performed better in the past six months as most of
\nthem reported increases in sales revenue, profit as well as
\nhigher utilization of production capacity,\" Danareksa said,
\nadding that CEOs' expectations continued to be bullish.<\/p>\n
\"The combination of fast improvements in the present
\nconditions and bullish expectations typically indicate that the
\neconomy has just passed the bottom in the very early stage of the
\neconomic upswing,\" it added.<\/p>\n
\"What is more encouraging is that the improvement in business
\nleaders' sentiments were uniform across all sectors.\"<\/p>\n
Danareksa said that in March more business leaders claimed an
\nincrease in capital spending and inventories of raw materials
\nover the past six months.<\/p>\n
It added that most companies had plans to hire new employees,
\nwhich was further proof of stronger business confidence.<\/p>\n
\"A significant majority of respondents remained bullish on the
\nprospects of higher sales revenue, profit and production capacity
\nutilization in the next six months,\" Danareksa said.<\/p>\n
The firm added that despite the recent tension between the
\ngovernment, the military and other political elites, and the
\nseemingly inability to handle acute pressure and high profile
\neconomic problems, business leaders' confidence in the ability of
\nthe government to enhance the economic climate, maintain
\npolitical stability and security and promote a healthier business
\nand investment environment remained intact and very robust.<\/p>\n
\"The majority of business leaders remained optimistic and
\nconfident about the government's ability to handle current
\nsituations,\" Danareksa said. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/consumer-confidence-slips-in-april-danareksa-survey-1447893297",
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