Consumer confidence tumbles to historic low, Danareksa says

Consumer confidence tumbles to historic low, Danareksa says

The Jakarta Post, Jakarta

The country's consumer confidence tumbled to a "historic" low
in February on discontentment at the government's inability to
boost strong economic growth, which would generate adequate
employment opportunities, Danareksa Research Institute said.

The consumer confidence index (CCI) tumbled 10.2 percent, to
82.3, from 91.6 in January, marking a further rise in the number
of pessimists that had already outnumbered optimists since
September last year, the institute said in a statement.

The February index is at "its lowest-ever level in the history
of the survey," said Danereksa, which has carried out the survey
regularly since 1999.

The survey was made about a month ahead of the Iraq war but it
did not specify if war fears, which haunted the global economy
months before the war, were a factor contributing to the drop in
the CCI.

Danareksa said its survey also noted a record fall of
confidence in the appraisal of the current economic situation to
a low never seen before in the history of the survey. The index
gauging sentiment on the economy in February dropped by 25.5
percent.

Accordingly, job seekers lost 15.3 percent of their
confidence, with the index falling to 41.2, its lowest-ever level
in the survey's history.

"With no signs of a marked change in the course of economic
affairs in February, consumers see dimming prospects for the
economy over the next six months," it said.

Confidence to get jobs in the next six months floundered 6.3
percent to a new low, at 89.0.

Another fresh low was also recorded by the index on family
income prospects, which fell to 97.8.

With concern on family income prospects ahead, shoppers are
more averse to spending on durable goods. Only 21.3 percent of
respondents expressed a desire to buy big-ticket items, down from
25.3 percent the previous month, as people are concerned about
limited fresh opportunities ahead.

"It is indeed the economy's inability to grow sufficiently
fast to offer new jobs that has disappointed a lot of people,
with the disappointment straightaway directed at the government
as the executive agent constitutionally entrusted to steer the
nation," it said.

The index of consumer confidence in government (CCGI) slipped
again by 6.5 percent to 106.0, with all components of the index
on the decline.

While it is true that the government was responsible for
setting employment-generating growth as the Cabinet's single
goal, the ultimate results of the goal rested also on all people,
especially the judiciary and lawmakers.

As such, it said, the lawmakers and judiciary ought also to be
blamed for the lack of job opportunities.