Consumer Confidence Weakens in February 2022

Bank Indonesia's (BI) Consumer Survey shows that the Consumer Confidence Index (CCI) weakened in February 2022 compared to the previous month.

In February 2022, the CCI stood at 113.1, lower than January 2022's level of 119.6.

Despite the weakening, the CCI remains above 100, meaning consumer confidence in economic conditions is still in the optimistic range.

According to the BI survey, the decline in the CCI occurred across all respondent spending categories, particularly respondents with monthly expenditures of Rp1-2 million across all age groups.

Spatially, consumer confidence in February 2022 weakened in 16 surveyed cities, with the sharpest declines in Mataram (20 points), Banjarmasin (14.1 points), Jakarta (10.9 points), and Makassar (10.9 points).

BI attributes the weakening of the CCI in February 2022 to a decline in the Current Economic Conditions Index (CECI) and the Consumer Expectations Index (CEI).

The CECI reflects consumer perceptions of Indonesia's current economic conditions compared to the previous six months. In February 2022, all components of the CECI weakened to 95.5, falling into the pessimistic range.

The decline in CECI components included the current income index, which fell to 102.5. The job availability index and durable goods purchases also decreased to 89.9 and 94 respectively, both falling into the pessimistic range.

Meanwhile, the CEI reflects consumer expectations regarding future economic conditions. The decline in the CEI was due to a decrease in the income expectation index, expectations regarding job availability, and expectations regarding business activity to 135.3 points, 129.7 points, and 127.4 points respectively. Despite the decline, these three indices remain in the optimistic range.

(See also: Despite Omicron, Indonesian Consumer Optimism Strengthens at the Start of 2022)