Jakarta: The Consumer Survey conducted by Bank Indonesia (BI) in May 2019 revealed how consumers remain optimist, as confirmed by a moderately increase in the Consumer Confidence Index (CCI) to 128.2 from 128.1 the month earlier.
"Consumer optimism was driven by the Current Economic Condition Index (CECI), in particular the respondents’ perception of current job availability and conditions for buying durable goods," BI said in a written statement released on Wednesday.
On the other hand, consumer expectations of future economic dynamics remained solid despite decreasing on the previous period, with the decline primarily affecting expectations of incomes and business conditions in the next 6 months.
The latest survey also showed how the respondents predicted a build-up of inflationary pressures in the next 6 months (November 2019) as seasonal demand for goods and services begins to increase near the end of the year.
In the meantime, solid national economic growth was recorded at 5.07 percent (yoy) in the first quarter of 2019, pointing to maintained domestic economic performance despite retreating from 5.18 percent (yoy) in the fourth quarter of 2018.
Seasonal factors at the beginning of the year as well as the impact of weaker-than-expected global economic gains contributed to the moderate economic downturn in Indonesia.
Economic growth in the first quarter of 2019 was primarily driven by domestic demand on the back of consumption by non-profit institutions serving households (NPISH) and households.
NPISH consumption growth accelerated to 16.93 percent (yoy) in the reporting period from 10.79 percent (yoy) in the three months to December 2018, buoyed by spending on preparations for the 2019 General Election.
Household consumption also remained solid as a consequence of controlled inflation, rising incomes and higher consumer confidence, notwithstanding slight moderation from 5.08 percent (yoy) to 5.01 percent (yoy) in the first quarter of 2019.