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Indonesian Consumer Optimism at Record High in October

Bareksa04 November 2014
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Indonesian Consumer Optimism at Record High in October
An employee checks the serial number of the two products, Cadbury Dairy Milk Hazelnut - (Reuters/Samsul Said)

The consumer confidence index was 120.6, the highest reading ever

Bareksa.com - Consumer optimism was at record high in October in Indonesia despite weakening economic activity, a Bank Indonesia survey showed on Tuesday.

The consumer confidence index was 120.6, the highest reading ever, and compared to a previous reading of 119.8 in September. A reading above 100 indicates that consumers are optimistic.

Expectations were higher for the next six months due to more job opportunities on infrastructure projects and an improvement in economic conditions.

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The survey also said that the consumers expected prices to moderate once seasonal demand for Christmas and the New Year subsided.

However, consumers expected price pressures to be high in the next six months due to concerns over expectations that the government will raise regulated fuel prices.

OCT SEP AUG
Consumer confidence index 120.6 119.8 120.2
Present situation index 113.3 115.8 115.6
Expectation index 128.0 123.7 124.8

CONTEXT

- Annual inflation in October was 4.83 percent up from 4.53 percent in September.

- A Reuters poll forecasted annual growth in gross domestic product at 5.10 percent in the third quarter, compared with central bank's forecast at around 5.2 percent. Official data due on Wednesday.

- On Nov. 13, Bank Indonesia is to announce its benchmark reference rate in the monthly meeting of Bank Indonesia's board of governors. (Source : Reuters)

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