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Retail sales slip for third straight month as consumer confidence dips
The central bank's preliminary data show that retail sales contracted for three straight months while consumer confidence slipped two consecutive months in July, generally due to the end of the Ramadhan-Idul Fitri holiday season.
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President Joko “Jokowi” Widodo (in white shirt) symbolically delivers assistance to traders during a visit on April 13, 2023 to a traditional market in Pasar Minggu, South Jakarta, ahead of Idul Fitri, which fell on April 22 to 23. (Antara/Hafidz Mubarak A)
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reliminary data from Bank Indonesia (BI) show that Indonesia’s retail sales is projected to dip in July, marking the third consecutive month of contraction after peaking in April during the Ramadhan-Idul Fitri holiday season.
The retail sales index (RSI/IPR in Indonesian) is projected to slip 4.6 percent to 212.7 points in July, from 222.9 points the previous month, according to the data that BI released on Wednesday.
The country logged an RSI of 223.5 points in May, meaning retail sales have been in a consistent decline since hitting a high of 242.9 index points in April.
The continuous dwindle was largely caused by decreasing demand for food, beverage and tobacco (FBT), followed by demand for cultural goods and recreation and then motor fuel. The central bank attributed the declining demand to the ending in June of school holidays and the Ramadhan-Idul Fitri holiday season, which had previously spurred demand.
The yearly RSI is projected to increase 6.3 percent to 212.7 points, from 200.2 points last year, driven by increased consumer spending on FBT, clothing and spare parts and accessories.
“The annual performance of retail sales is forecast to remain strong in July 2023,” BI spokesperson Erwin Haryono said in a press release on Wednesday.
Read also: Indonesia inflation drops to almost below 3 percent
