Consumers feel more confident about economy
<p>Consumers feel more confident about economy</p><p> JAKARTA (JP): The consumer confidence index rose to 56.8 from
52.2 on the back of stronger confidence in the economy in the
reporting month and its prospects in the coming six months.</p><p>According to a survey of consumer confidence conducted for the
Danareksa Research Institute by AC Nielsen, the increased
confidence tempers, but does not reverse, the downtrend of the
index over the last six-month period in the absence of a
substantial easing of the tensions within the country.</p><p>In fact, confidence in the government continued to deteriorate
in November. It is therefore too early to conclude the present
uptrend is sustainable. The volatility of this index over the
past six months underpins this fragility.</p><p>The survey is based on face-to-face interviews of at least
1,700 Indonesian households across six main areas of the country.</p><p>In November, consumers felt aspects of the economy, both local
and national, were better than expected, with the economy growing
and the job market expanding.</p><p>With current sentiment less pessimistic and expectations
revised upward, consumers are more confident of the growth of the
national and local economy and the job market, and the prospects
for their family incomes over the next six months. They have
greater confidence that things are growing and that this growth
will continue.</p><p>Nonetheless, consumers with income levels above Rp 1 million
(US$107 at November's average exchange rate of Rp 9,351 per
dollar) a month are less confident in the economy's recovery.</p><p>On the contrary, consumers with income levels of less than Rp
1 million have greater confidence the economy will grow.</p><p>All consumers are more optimistic of their management of cash
flow in terms of household income and expenses. However, the
elderly (60 and above) are more pessimistic in their assessment
of the economy.</p><p>By province, consumers from Central Java, East Java, North
Sumatra and South Sulawesi are more confident in the prospects
for the economy in November and the coming six months.</p><p>Confidence in the economy eroded in Jakarta and West Java,
especially in their view of economic growth in November.
Consumers from both these provinces were more pessimistic in
their assessments of the economy, with a plunge in confidence
(from 24.8 to 17.1) in West Java underscoring the skepticism of
an economic revival.</p><p>Confidence in urban and rural areas improved in November, with
assessments of the present situation less pessimistic and
expectations for the future more optimistic.</p><p>Laborers and job seekers were optimistically confident, but
the confidence level of self-employed breadwinners went from
pessimistic to optimistic.</p><p>Looking ahead over the next six months, consumers have lees
confidence in price stability, with most of them expecting prices
to rise. They also believe interest rate hikes are more likely.</p><p>Consumers are less confident in exchange rate stability, with
most of them unable to say where the rupiah is heading. With
regard to the stock market, respondents are more confident the
composite price index will edge up.</p><p>Confidence in the government continued to slump, with
consumers now pessimistic in their assessment of the government.
This was the sentiment in all regions except South Sulawesi
dropped, with the largest fall in North Sumatra. Both urban and
rural areas showed a decline in confidence, with rural consumers
still optimistic and urban consumers pessimistic. Discontent with
the government also was found among educated and wealthier
respondents.(03)</p>
52.2 on the back of stronger confidence in the economy in the
reporting month and its prospects in the coming six months.</p><p>According to a survey of consumer confidence conducted for the
Danareksa Research Institute by AC Nielsen, the increased
confidence tempers, but does not reverse, the downtrend of the
index over the last six-month period in the absence of a
substantial easing of the tensions within the country.</p><p>In fact, confidence in the government continued to deteriorate
in November. It is therefore too early to conclude the present
uptrend is sustainable. The volatility of this index over the
past six months underpins this fragility.</p><p>The survey is based on face-to-face interviews of at least
1,700 Indonesian households across six main areas of the country.</p><p>In November, consumers felt aspects of the economy, both local
and national, were better than expected, with the economy growing
and the job market expanding.</p><p>With current sentiment less pessimistic and expectations
revised upward, consumers are more confident of the growth of the
national and local economy and the job market, and the prospects
for their family incomes over the next six months. They have
greater confidence that things are growing and that this growth
will continue.</p><p>Nonetheless, consumers with income levels above Rp 1 million
(US$107 at November's average exchange rate of Rp 9,351 per
dollar) a month are less confident in the economy's recovery.</p><p>On the contrary, consumers with income levels of less than Rp
1 million have greater confidence the economy will grow.</p><p>All consumers are more optimistic of their management of cash
flow in terms of household income and expenses. However, the
elderly (60 and above) are more pessimistic in their assessment
of the economy.</p><p>By province, consumers from Central Java, East Java, North
Sumatra and South Sulawesi are more confident in the prospects
for the economy in November and the coming six months.</p><p>Confidence in the economy eroded in Jakarta and West Java,
especially in their view of economic growth in November.
Consumers from both these provinces were more pessimistic in
their assessments of the economy, with a plunge in confidence
(from 24.8 to 17.1) in West Java underscoring the skepticism of
an economic revival.</p><p>Confidence in urban and rural areas improved in November, with
assessments of the present situation less pessimistic and
expectations for the future more optimistic.</p><p>Laborers and job seekers were optimistically confident, but
the confidence level of self-employed breadwinners went from
pessimistic to optimistic.</p><p>Looking ahead over the next six months, consumers have lees
confidence in price stability, with most of them expecting prices
to rise. They also believe interest rate hikes are more likely.</p><p>Consumers are less confident in exchange rate stability, with
most of them unable to say where the rupiah is heading. With
regard to the stock market, respondents are more confident the
composite price index will edge up.</p><p>Confidence in the government continued to slump, with
consumers now pessimistic in their assessment of the government.
This was the sentiment in all regions except South Sulawesi
dropped, with the largest fall in North Sumatra. Both urban and
rural areas showed a decline in confidence, with rural consumers
still optimistic and urban consumers pessimistic. Discontent with
the government also was found among educated and wealthier
respondents.(03)</p>