Indonesia consumer confidence fell to a 10-month low in July as the latest outbreak of COVID-19 and mobility restrictions imposed by the government cast doubt over businesses and household income in Asia’s new pandemic epicenter.
The country’s consumer confidence index was at 80.2 in July, falling sharply from 107.40 in June, and marked the lowest reading since October 2020, according to a survey released by Bank Indonesia on Monday (Aug 9). A value of under 100 suggests pessimism.
The central bank said in a release accompanying the data: “Consumers view economic limited economic expansion in the coming six months, either in the form of business activities or jobs availability.”
Cloudy Third Quarter
The consumer confidence index has been rising to above 100-mark in the second quarter and even reached 15-month high in June. The upbeat consumers helped household demand rising 5.93% on-year in the quarter ending June.
Robust household demand, which contributes to more than half of gross domestic product in the world’s fourth largest populace, drove the country’s GDP, growing by 7.07% in the second quarter.
Economists expected mobility restrictions imposed since early July to put a lid on growth in the third and fourth quarter, though the sharp drop in July’s consumer confidence may cause greater drag on growth than prior estimations. – (Capital.com)