Consumer index down in August: BI<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The consumer confidence index -- which measures the people's
\nperspective on the economic situation -- declined in August, Bank
\nIndonesia said over the weekend in its latest report.<\/p>\n
The August index was lower at 76.3 from 81.8 posted the month
\nearlier.<\/p>\n
The rising pessimism reflected people's declining confidence
\nin the prospect of family income, the central bank said.<\/p>\n
The report came amid improving macroeconomic indicators as
\ninflation has eased, interest rates are down and the rupiah has
\nstrengthened.<\/p>\n
Analysts, however, have said that the improving macroeconomic
\npicture has yet to translate into higher investment activities.
\nInvestment is seen as crucial to help push economic growth to be
\nable to generate more jobs for the millions of unemployed.<\/p>\n
The high unemployment rate in the country is weakening
\npeople's purchasing power.<\/p>\n
The Bank Indonesia report said that the index that shows the
\nnumber of consumers who think that buying durable goods was now
\nthe right time also fell to 65.2 percent from the previous
\nmonth's 70.9 percent, something that could weaken consumer
\nspending.<\/p>\n
While the report did not elaborate on what impact it could
\nhave on the economy, the decreasing consumer confidence would
\nprove costly to the economy, which heavily relies on domestic
\nconsumption. The government expects the economy to grow by 4
\npercent this year, with domestic consumption as the main growth
\nengine amid weak exports and investment performance.<\/p>\n
The survey also revealed that people's expectations of the
\neconomy in the next six months to 12 months were lower, dropping
\nfrom 107.2 in July to 90.5 percent in August.<\/p>",
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