Consumer confidence continues to fall

Consumer confidence continues to fall

The Jakarta Post, Jakarta

Consumer confidence in the country fell for the third consecutive
month in December due to perceived higher threats of inflation
and fears of rising unemployment, according to the Danareksa
Research Institute.

In the latest monthly survey carried out by Danareksa, the
Consumer Confidence Index declined to 100.5 in December from
105.6 in the previous month.

The Index failed to claw its way back from a continued slide
of sentiment throughout the last quarter of last year, after
rebounding in the third quarter.

The Index jumped to 112.3 in August from 94.1 in July,
following the relatively smooth succession of the country's
presidency from Abdurrahman Wahid to Megawati Soekarnoputri in
late July.

The Index started declining to 107.7 in October due to a loss
of momentum caused by the lack of any fundamental change in the
economy, and continued to fall to 105.6 in November.

Elsewhere, Danareksa said the Present Situation Index dropped
to 82.5 from 89.5 a month before, while the Expectations Index
slid to 114.1 from 117.7, as weakened economic conditions in
December weighed upon confidence that the country's economic
recovery might stand in the offing.

It said that the Consumer Confidence in the Government Index
slipped to 130.9 in December from 132.7 a month earlier,
emphasizing the deterioration of optimism over how fast the
government could address the issue of slowing economic growth and
inflation.

The agency said that the combination of higher costs of living
and weaker job demand had pulled consumer sentiment virtually to
a threshold of pessimism, as consumers felt the heat in December
from the government's plans to raise fuel prices, electricity and
telephone rates in early 2002.