Household Consumption Still Contracted by 2.23% in Q1 2021

Consumer purchasing power remained weak in Q1 2021. This is reflected in the continued contraction of household consumption by 2.23% year-on-year (yoy) in January-March 2021.

However, Indonesian household consumption continued to improve from its lowest point in Q2 2020. At that time, household consumption plummeted by 5.52%.

Based on its components, household consumption in the transportation and communication sector experienced the deepest contraction at 4.24%. Household consumption in the restaurant and hotel sector grew by -4.16%; clothing, footwear, and their maintenance services by -2.71%; and food and beverages (excluding restaurants) by -2.31%.

Meanwhile, only two components of household consumption showed positive growth in Q1 2021: health and education (0.31%) and housing and household goods (1.27%).