Jakarta, Indonesianpost.com – A Bank Indonesia survey recently revealed that the country’s consumer confidence index or CCI has risen to 128.3 points in May, up by 2.2 points from April’s 126.1.
The central bank attributed the stronger consumer confidence to the also increasing current economic condition index (CECI) and consumer expectation index (CEI). Bank Indonesia data shows that CECI had climbed from 116.6 in April to 118.9 a month later. The country’s CEI stood at 137.8 in May or up by 2.3 points.
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“The CECI experienced broad growth across all components, particularly the job availability index and purchase of durable goods index. The CEI gains were primarily attributable to the business activity expectation index,” a Bank Indonesia press statement issued on Monday reads.
The durable goods purchase index saw a 2.4-point month-to-month increase to 110.2 in May. Consumers’ expectations about their current income and job availability against those 6 months ago stood at 125.4 and 121.1 in May, respectively.
According to Bank Indonesia, the business activity expectation index climbed 7.8 points to 139.9 in May. Expectations towards job availability for the next six months stood at 136.6 in May.
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Indonesians, however, are growing slightly less optimistic about their future income. Bank Indonesia reported that the income expectation index dropped from 137.9 in April to 136.9 last month.
Data shows consumers’ average propensity to consume ratio reached 75.4 percent in May, relatively stable compared to April’s 75.2 percent. Their debt-to-income ratio also stood at 8.8 percent, coupled with a saving-to-income ratio that dropped to 15.7 percent.