June 2017, Consumer Optimism Falls

Consumer optimism in June 2017 weakened compared to the previous month. This is reflected in the results of Bank Indonesia's Consumer Survey, which shows that the Consumer Confidence Index (CCI) in June 2017 fell 3.5 points from the previous month. The largest decline in consumer optimism occurred in Makassar and Banten. Meanwhile, based on spending levels, respondents with monthly expenditures of Rp 3-4 million experienced the largest decline in CCI.

Consumers' perception of current economic conditions also declined. As an indication, the Current Economic Conditions Index (CECI) in June 2017 weakened by 1.3 points to 113.7 compared to the previous month, triggered by a decline in the job availability index. Similarly, consumer expectations regarding economic conditions in the next 6 months also fell. This is shown by a decrease in the Consumer Expectation Index (CEI) by 5.9 percent to 131 from the previous month. The decline in the expected income and business activity indices weighed on consumer optimism in June 2017.

An index above 100 indicates that consumers are still optimistic, while an index below 100 indicates pessimism.