Consumer confidence was little changed in April with the Consumer Confidence Index (CCI) staying at 86.8, according to the latest survey conducted by the Danareksa Research Institute (DRI).
Consumers claimed to perceive an improvement in national economic conditions, the agency said as evidenced by its April consumer confidence survey.
"However, on the downside, they also said that they were still burdened by high prices of foodstuffs. Indeed, some 64.4 percent of consumers still cite rising foodstuff prices as a major concern - or down only slightly from 66.5 percent in March," it said.
Of the two main components that make up the CCI, the component measuring consumer sentiment toward current conditions, the Present Situations Index (PSI), fell 0.8 percent to 67.4, DRI said.
The other main component of the CCI - the one measuring consumer sentiment toward the future (the Expectations Index or EI) - did manage, however, to edge up 0.5 percent to 101.4.
The increase in the EI reflects greater consumer optimism on the prospects for the economy as well as hopes that brisker economic activity would finally bring about a more dynamic job market.
The rosier economic outlook bodes well for greater consumer spending in the months to come, the research agency said.
According to the survey, some 25.2 percent of consumers now plan to buy a significant durable good over the next six months.
"This is only slightly less than in March when 25.4 percent of consumers surveyed planned to purchase durable goods," it said.
Consumers believe that inflationary pressures will ease slightly over the next six months (the index measuring consumer sentiment toward inflation edged down 0.1 percent to 187.1 in April from 187.2 in March).
Consumer confidence in the government has finally gone up slightly. After five consecutive declines, the Consumer Confidence toward the Government Index (CCGI) managed a 0.92 percent increase to 98.6.
"This is largely due to the expectation that the government will be able to keep the economy on its current growth path *this component of the CCGI surged 12.51 percent*," the research agency said.
Despite some recent political controversies, the economy is performing well and consumers seem to share the opinion that the economy will strengthen even further.
