Indonesian consumers more optimistic in August: central bank survey

[JAKARTA] Indonesian consumers were more optimistic in August than a month earlier, a Bank Indonesia survey showed on Wednesday.

The central bank's consumer confidence index rose to 112.6 in August from 109.9 in July.

The increase of 2.7 points from July stemmed from rises in both the Current Economic Index and Consumer Expectation Index. A reading above 100 indicates consumers are optimistic.

However, low job availability in August made consumers preferred to delay purchases of durable goods.

Consumers expected economic conditions to improve in the next six months.

The survey also showed expectations of high price pressures over the next six months, reflecting consumers' concern over the weakening rupiah as well as the government cutting subsidies for electricity, liquid petroleum gas and fuel.

The annual inflation rate in August was 7.18 per cent, easing from 7.26 per cent in July.

REUTERS