Q3 2017: Transportation and Communication Expenditure Shows Highest Growth

Household consumption (RT) in the third quarter of 2017 showed a slowdown compared to the previous quarter. Data from the Central Statistics Agency shows that the Gross Domestic Product (GDP) based on household consumption expenditure in the third quarter of this year only grew by 4.93 percent to Rp 1,372.05 trillion, lower than the previous quarter which grew by 4.95 percent.

Public spending on transportation and communication led household consumption growth at 5.86 percent. This was followed by spending on restaurants and hotels at 5.52 percent, and then health and education at 5.38 percent. These three expenditures were above the third-quarter economic growth of 5.06 percent. Meanwhile, spending on clothing, footwear, and their maintenance services recorded the lowest growth, at only 2 percent.

Household expenditure in the third quarter of 2017 that recorded the highest growth was consumption of transportation and communication, reaching 0.52 percentage points, followed by other expenditures at 0.12 percent. Meanwhile, the largest decline in RT expenditure was consumption of clothing, footwear, and maintenance services, at 1.47 percent.