Indonesia consumer confidence plunges to five-month low

  • Consumers have become less optimistic about the national economy as the ripple effect of the fuel price hike spreads across the country, a Bank Indonesia (BI) survey shows.
  • The central bank’s latest report showed that the consumer confidence index (CCI) dropped by 7.5 points to 117.2 in Sep 22, the lowest level in five months.
  • The economic conditions subindex also fell by 3.7 points to 108.3, the lowest since April, while the expectations subindex tanked by 11.6 points to 126.1, the lowest figure in 2022.
  • Although the CCI remains in positive territory above 100, the latest figures are far below the headline index’s highest level recorded in 2022, reaching 128.9 points in May 22.
  • The biggest drop since the May 22 peak was recorded in assessments of personal income, with the subindex plummeting 10.8 points to 114.5 in Sep 22 as inflation rose in recent past months.
  • Although the indicator for durable goods purchases dropped only 0.6 points, it is the lowest among all indicators, barely holding in positive territory at 102.5 points.
  • In no area has consumer optimism suffered more than the business prospects indicator, where the assessment of business activities in the next six months has fallen by 20 points to 118.8.
  • Meanwhile, consumers’ views on job availability and their personal income pointed in the same direction: down.
  • Further breakdown of the BI data shows that the economic conditions subindex for consumers spending between IDR1mn-IDR2mn per month has inched into negative territory after falling 2.8 points to 98.9.

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