Friday, 27 November 2020 | 15:49 WIB

BI: Consumer Confidence Strengthens in July

BI: Consumer Confidence Strengthens in July

JAKARTA, NETRALNEWS.COM - Through its survey, Bank Indonesia (BI) has found that consumer optimism has increased. This is seen from the rising Consumer Confidence Index (CCI) in July 2017.

In BI’s survey on Tuesday (8/8/2017), CCI for July of 2017 rose 1.0 point from the previous month to 123.4.

The increase in consumer optimism in July was driven by improved consumer expectations of business and earnings conditions, and job availability in the next six months.

Meanwhile, consumers' perceptions of current economic conditions have declined primarily on the timelines of durable goods and current income.

Nevertheless, perceptions of current employment availability are improving although still at a pessimistic level (index <100).

On the other hand, the pressure on prices to increase in the next six months are expected to rise, as indicated by the upcoming 6-month Price Expectation Index (IEH) increase of 4.0 points to 171.5.

"The increasing expectation of the price increase is mainly influenced by the concerns of respondents to the possibility of an increase in administered prices," BI said in a report.

In line with current weak consumer earnings, the share of spending on consumption declined from 64.5 percent to 64 percent.

Similarly, the portion for savings decreased from 21 percent to 20.6 percent.

On the other hand, the portion of loan repayments increased from 14.5 percent in the previous month to 15.4 percent.