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Consumer confidence drops slightly as retail sales remain strong
An expectation of harder times ahead is making Indonesian consumers somewhat wary about their economic prospects, but you wouldn't know it when visiting malls, as retail sales remain strong, for now.
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Chop chop: A kitchen worker cuts up pork at a restaurant in the Chinese Quarter of Surabaya, East Java. (JP/Raka Ibrahim) (JP/Raka Ibrahim)
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n expectation of harder times ahead is making Indonesian consumers wary about their economic prospects even as retailers across the country are reporting fast year-on-year growth in sales.
According to data published by Bank Indonesia (BI) on Tuesday, the Consumer Confidence Index (CCI) slipped by 5 points (bps) to 123.2 points in in July, extending a marginal decrease of 0.7 points recorded in June.
Despite the decrease, consumers are still considered confident, as any reading above 100 indicates optimism, while figures below that threshold mark overall pessimism.
Based on the results of regular opinion surveys, the CCI is used to gauge how optimistic consumers feel about current economic conditions and includes views on inflation and labor market prospects.
“The decline in consumer optimism in July 2022 was driven by a decline in both consumer optimism regarding current economic conditions and consumer expectations for the future economic [development]. However, both of them remain strong,” BI spokesman Erwin Haryono said at a presentation of the latest data on Monday.
Read also: Indonesia shines amid global gloom with forecast-beating GDP
