Indonesia consumer confidence index softens in July

08-Aug-2012 Intellasia | Reuters | 7:01 AM

Indonesian consumers were slightly less confident on the country’s economy for the next three months, due to worries over jobs and rising price pressures, a central bank survey showed on Monday.

The consumer confidence index in July fell to 113.5, from a five-month high of 114.4 a month earlier, though remained higher than in May. Data earlier on Monday showed Indonesian GDP as surprisingly buoyant in the second quarter, at 6.4 percent growth year-on-year.

Respondents on the consumer index survey expected less jobs to be available in the next few months as an economic downturn may delay the start of private and government projects, the survey said.

                            JUL     JUN     MAY 

   Consumer confidence index   113.5   114.4   109.0 

   Present situation index     105.0   107.5   103.8 

   Expectation index           122.0   121.3   114.3

CONTEXT:

The central bank surveys some 4,600 households in 18 cities across Southeast Asia’s largest economy, where domestic consumption accounts for about 55 percent of the economy.

A reading above 100 shows that consumers in general are optimistic.

Consumers remain optimistic on the economy in the next six months and expect an increase in price pressures during the Christmas and New Year holidays.

Consumers also expect a rise in income, driven by strong business activity due to cheap bank loans and improving infrastructure.

http://in.reuters.com/article/2012/08/06/indonesia-economy-consumer-idINJ9E8CJ02920120806