Consumer optimism further increased in June thanks to a wave of THR

KONTAN.CO.ID – JAKARTA. Consumer optimism rebounded in June 2018. The evidence, the consumer survey conducted by Bank Indonesia (BI), the Consumer Confidence Index (IKK) in June 2018 rose 3 points to 128.1 from 125.1 the previous month.

The increase is attributable to a number of factors, including the index of durable goods purchases.

On a quarterly basis, the average IKK for Q2 / 2018 was 125.2, higher than 123.4 in the previous quarter and 124.0 in the same period last year.

Increased consumer confidence is stimulated by improved perceptions of current economic conditions and expectations of future economic conditions. This is indicated by the rise of 4.7 points in the index of current economic conditions (CECI), boosted by a rise in the long-term purchasing index, as the equipment electronics and home appliances, which rose 5.9 points to reach 128.9.

"In June 2018, consumer spending for durable goods increased compared to the previous month, mainly for the purchase of electronics and furniture", says the BI report quoted by Kontan.co.id on its official website, Monday (9/7).

The increase in consumer spending for purchases of durable goods accompanied the receipt of the allocation Hari Raya (THR) and the increase operating income. This is reflected in the current income index which rose by 5.3 points to 136.1 in June 2018.

At the same time, the Consumer Expectations Index (IEK) increased by 1, 3 point, boosted by a rise in the index of employment expectations.

The results of the survey indicate a drop in price increases over the next three months (September 2018) compared to the previous month, in line with the normal return of demand after the holidays of the year. 39, Eid al-Adha. This is reflected in the expected price index (IEH) for the next three months of 171.1, lower than that of 180.0 the previous month.

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