News Room - Business/Economics

Posted on 13 Aug 2008

Indonesian consumer confidence improved in July - central bank

Indonesian consumer confidence rose in July after falling for eight straight months, indicating that less respondents expressed pessimism about current economic conditions and the economic outlook for Indonesia, according to a central bank survey released on Tuesday.

A central bank survey of 4,600 households in 18 cities across Indonesia showed the consumer confidence index rose to 82.1 points in July from 79.1 points in June.

A figure above 100 indicates optimism while a number below 100 suggests pessimism. The last time the index was above 100 was in November 2007.

The two components of the index were mixed, Bank Indonesia, the central bank, was quoted by AFP as saying.

The present conditions index, which indicates confidence about current economic conditions compared to six months earlier, stood at 72.9 points, unchanged from the previous month.

Meanwhile, the consumer expectations index, which gauges confidence in the economic outlook for the next six months, increased to 91.3 points from 85.2 points.

"After falling since November 2007, the consumer confidence index in July bounced back by 3 points from the previous month, although it was still in pessimism territory," the central bank said in a statement.