Consumer confidence index strengthens in May: BI survey

Jakarta (ANTARA News) - Indonesias consumer confidence index rose to 116.9 in May from 113.9 in April, according to the result of a survey conducted by Bank Indonesia (BI) last month.

The index hike was fueled by consumers rising optimism about the economy currently and in the next six months, the central bank said on its website on Wednesday.

On a yearly basis, the consumer confidence index in May 2014 was also higher than that of the same period last year, when it was 112.8.

The result of the survey also showed consumers predicted that the prices of commodities will continue to increase until three months after the fasting month of Ramadhan and the post-fasting month festivities of Lebaran.

The survey also showed that pressure on the prices of commodities in the next few months (until November 2014) will remain strong due to worry about the supply of consumer goods and the expected decline of government subsidy.

Consumer Confidence Index (CCI) measures consumers expectations about current income and job availability compared to six months ago, appropriate time to buy durable goods, general economic conditions and job availability expectations in the next six months.

The index is based on a survey of about 4600 middle and upper class households in major cities (these cities cover about 78 percent of the GDP).(*)