BI survey indicates increased consumer optimism

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The Bank Indonesia (BI) Consumer Survey in April 2022 indicated that consumer confidence in economic conditions increased, as reflected in the Consumer Confidence Index (IKK) of 113.1, an increase from 111 in the previous month.

Chief Executive Director of the BI Communications Department Erwin Haryono, in an official statement here on Wednesday, stated that the increase in IKK was observed in majority of the expenditure categories, age groups, and respondents’ education categories.

Spatially, the increase in IKK occurred in most of the cities covered by the survey, with the largest being in Bandar Lampung, followed by Samarinda and Denpasar.

He explained that increasing consumer confidence in April 2022 was driven by improving consumer perceptions of the current economic conditions.

This increase is related to perceptions of current income, availability of employment, and increased purchases of durable goods.

Meanwhile, consumer expectations for future economic conditions remained at the optimistic level (index >100) at 127.2, although not as high as the previous month at 128.1, supported chiefly by income expectations.

The BI consumer survey in April 2022 also indicated that the average proportion of consumer income for consumption decreased slightly, while the average proportion of installments/debt payments tended to be stable.

This is indicated by average propensity to consume ratio that fell, from 74.4 percent to 73.9 percent, while the average debt-to-income ratio remained at 9.7 percent.

Haryono remarked that the portion of savings to income in April 2022 was recorded at 16.4 percent, higher than 15.9 percent in the previous month.

Based on expenditure groups, the average share of consumption to income was observed to decline in several expenditure categories.

On the other hand, the portion of savings to income increased in some expenditure categories, the highest for respondents, with an expenditure level of more than Rp5 million per month.

Source: Antara News