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Consumer confidence rebounds, but gains may prove short-lived
The consumer confidence index rose in August, ending a two-month decline, but experts have expressed doubt that it marks a turnaround.
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A welcoming face: Shopkeeper Etty poses at her eatery, Warung Nasi Karasak Ma Iyum, in Bandung, West Java, in August. (JP/Anindito Ariwandono)
I
ndonesian consumers turned more optimistic in August after mounting inflationary pressure soured the mood in the preceding months, while retail sales continued to grow, albeit at a slower pace.
The latest data released by Bank Indonesia (BI) on Thursday shows the consumer confidence index (CCI) rising by 1.5 points to 124.7 points in August, after two consecutive months of decline.
The CCI, which incorporates consumer opinions on inflation and employment prospects, is used to measure consumer optimism about the state of the economy.
Readings above 100 denote optimism, while values below that threshold denote a sense of pessimism.
“Consumers were more upbeat in August 2022, driven by consumer optimism in the current economic conditions as well as consumer expectations about economic conditions moving forward,” BI spokesperson Erwin Haryono said in a press release on Thursday.
The expectations subindex rose by 2.2 points to 133.7, while the existing conditions subindex increased by 0.8 points to 111.7.
However, respondents in the lowest income category, defined as those spending between Rp 1 million and Rp 2 million per month, as well as those in the highest category, who spend more than Rp 5 million per month, are overall less positive about the economy than middle-income earners.
