Consumer confidence up again: Danareksa

Consumer confidence up again: Danareksa

The Jakarta Post, Jakarta

Consumer confidence rose in June for the fifth consecutive month,
paving the way for even greater consumer confidence, the
Danareksa Research Institute said on Tuesday.

Danareksa said its latest survey showed that the consumer
confidence index (CCI) increased to 101.4 from 99.3 in May.

Danareksa said that people were more optimistic about the pace
of the economic recovery.

The optimism was reflected in the rise in the index gauging
confidence in family income prospects, which jumped 5 percent to
117.3, and the higher percentage of respondents ready to purchase
durable goods in the next six months from 24 percent to 27.7
percent.

A greater number of respondents also believed that inflation
and interest rates would continue to decline, and pressure on the
rupiah would continue to subside.

However, Danareksa warned that despite the upbeat assessment
on the economy, there were declines in both the current
recruitment index and employment index.

The index which measures sentiment on current recruitment fell
6.2 percent to 60.7, while the index on employment prospects
slipped from 100.8 to 97.9.

This appears to reaffirm lingering pessimism that the
government can not generate economic growth at a level that can
reduce unemployment.

The government is targeting economic growth of 4 percent this
year, to be driven mainly by strong consumer spending. But
experts have said that in order for the economy to be able to
reduce the large number of unemployed, it must grow at pre-crisis
levels of around 6 percent.

In compiling the monthly CCI survey, Danareksa and AC Nielsen
interviewed at least 1,700 households in six main areas across
the country.

The index ranges from a score of zero to 200, with zero
meaning very pessimistic and 200 very optimistic. If the index is
below 100, pessimistic responses outnumber optimistic ones. if
the index is above 100, the reverse is true.