Central bank indexes measuring consumer confidence and retail sales both dipped in June, pointing to ongoing weakness in household spending as a key pillar of Indonesia’s economy.
A vendor serves customers shopping for staple foods on June 11 at Kahayan Market in Palangka Raya, Central Kalimantan. (Antara/Auliya Rahman)
Central bank surveys indicate weakening consumer confidence and retail sales on the back of recent interest rate hikes, suggesting households may tighten their belts in the coming months.The consumer confidence index (CCI) dipped to 117.8 points in June from 120.9 points in the preceding month, according to a monthly survey released by Bank Indonesia (BI) on Wednesday.
BI spokesperson Ramdan Denny Prakoso said in a press statement released together with the survey results that the CCI demonstrated that confidence “in economic conditions is maintained”.
The reading remained well above the 100-point threshold that separates optimism from pessimism but the indicator has been on a downward trend since the beginning of the year and is close to the multiyear low of 115 points registered in September last year.
