Household consumption in the second quarter of 2017 grew by 4.95 percent (YoY), indicating a slowdown compared to the same quarter of the previous year, which reached 5.04 percent. However, it remained higher than the previous quarter, which only grew by 4.94 percent. Meanwhile, based on the structure of Gross Domestic Product (GDP) by expenditure at current prices, household consumption supported growth by 55.61 percent, lower than the previous quarter's 56.96 percent.
This slowdown in consumer spending was triggered by a decline in public income due to falling commodity prices and lower wages for laborers and farmers. Meanwhile, among the upper-middle class and above, there was a tendency to restrain spending by saving money in banks or investing.
Based on the sources of Gross Domestic Product (GDP) growth, in the second quarter of this year, household consumption contributed 2.65 percent to the total growth of 5.01 percent. This figure is lower than the contribution in the previous quarter and the second quarter of 2016, which was 2.72 percent.
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