JAKARTA: Economic gauges for retail sales and consumer confidence marked slight improvements in June, thanks in part to a boost from the mid-year school holiday.
According to preliminary data from Bank Indonesia (BI) published on Wednesday, the retail sales index (RSI) for June is expected to inch up to 233.7 points in a 2% year-on-year (y-o-y) increase from 229 points in June 2024.
On a monthly basis, the reading marks a marginal 0.5% rise from 233.4 points recorded in May.
The RSI report attributed the improvement to “seasonal factors”, namely the mid-year school holiday, Idul Adha and mid-season sales.
Sales of vehicle fuel are expected to see the strongest annual growth in June with 12.5%.
Additionally, sales growth of car and motorcycle spare parts and accessories as well as food, beverage and tobacco are projected to touch just 1.8% and 3.1% y-o-y, respectively.
Another category of goods that is projected to see positive sales growth is clothing, with around 3.7% y-o-y.
Meanwhile, sales of information and communication devices, household appliances as well as cultural and recreational goods are forecast to contract from a year earlier.
Respondents of the BI survey said they were more optimistic about the retail sales outlook for the next three and six months, mainly because of the Independence Day celebrations in August.
They also expected inflationary pressure to decrease until October, and then rise again the following month.
A separate central bank survey released on Tuesday showed that the consumer confidence index improved slightly to a reading of 117.8 points in June from 117.5 points in May.
In a press statement published with the survey, BI spokesman Ramdan Denny Prakoso said the indicator remained at an “optimistic level” in June.
The uptick was mostly supported by improvements in the sub-index on current economic conditions, which is made up of three parts: current income, job availability and durable goods purchases. — The Jakarta Post/ANN
