Bank Indonesia: Consumer Confidence in Indonesia Increases in May 2014
According to Bank Indonesia's consumer confidence survey, Indonesian consumers were more optimistic in May 2014 compared to the previous month. Consumer confidence in Southeast Asia's largest economy increased to 116.90 in May 2014 from 113.90 in April. The increase indicates that Indonesian consumers are more optimistic about the current condition of the Indonesian economy as well as conditions in the coming six months. The result in May 2014 was also higher than in the same month in 2013 (112.8).
The survey showed that in 12 out of 18 Indonesian cities consumers were more optimistic about the economy. The highest increase was found in the cities of Bandar Lampung (10.2) and Bandung (9.3).
Based on spending, those consumers who spend at least IDR 5 million (USD $423) per month showed the largest growth in confidence.
The central bank's survey also indicated that Indonesian consumers expect inflationary pressures in the three months ahead - which includes the holy Islamic fasting month of Ramadan as well as subsequent Idul Fitri celebrations, which both tend to trigger inflationary pressures as people spend more money on food, clothes, etc. - as well as in the coming six months as Indonesian consumers expressed concern about a reduction in government subsidies.
Indonesia Consumer Confidence:
