From Government of Indonesia

Consumers Upbeat About Economy - Survey

Consumers were optimistic about the economy in November for the first time after more than a year of continued pessimism about the economy, a central bank survey showed on Monday (11/12/06).
The consumer confidence index rose 3.5 points to 101.6 in November from 98.1 in October. A reading above 100 means consumers are optimistic about the future. The last time it was positive was when it read 101.7 in June last year.
The improving confidence comes after annual inflation plunged in the fourth quarter of this year as the impact of a big fuel price rise in October last year faded, allowing the central bank to sharply cut borrowing costs.
"I think consumer confidence will continue to rise. There should be no reason for it to fall, especially if economic conditions remain stable," economist, Helmi Arman of Bahana Securities, said, according to Reuters.
Consumer spending, a key driver of the economy, is already up. Sales by the country's top three motorcycle makers jumped more than 50% last month, hitting a record monthly volume and providing more evidence of a rebound in the sector.
The country's $6 billion motorcycle market is seen as a barometer of consumer spending, which sagged in the wake of the oil price rise last year and the accompanying surge in inflation.
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