The ITK value of South Sumatra Province in the second quarter of 2016 amounted to 108.05, meaning that the economic conditions of consumers increased from the previous quarter

A. General Explanation

The Consumer Tendency Index (ITK) is an indicator of the latest consumer economic development produced by the Central Bureau of Statistics through the Consumer Tendency Survey (STK). ITK is an index that describes the condition of the consumer economy in the current quarter and forecasts for the coming quarter.

The number of STK samples in quarter II-2016 was 14,600 households in all provinces in Indonesia. The selection of samples is carried out in panels between quarters to obtain a more accurate picture of changes in consumer perceptions over time. Beginning in the first quarter of 2015, improvements were made to the method of enumeration and calculation of ITK. STK respondents were selected in the medium and high category census block strata based on wealth index and were a subsample of the National Socio Economic Survey (Susenas) specifically in urban areas.

B. Condition of the Consumer Economy Quarter II-2016

K The ITK value of South Sumatra Province in the second quarter of 2016 amounted to 108.05, meaning that the economic conditions of consumers increased from the previous quarter. This attitude of consumer optimism is different from the attitude of consumers in the pessimistic quarter I-2016 (ITK value of 96.44).

þ The increase in the volume of household consumption and the low influence of inflation on total household expenditures encourage an increase in the condition of the consumer economy.

C. Estimated Consumer Economy Quarter III-2016

þ Economic conditions in the third quarter of 2016 are estimated at 105.47, meaning that the economic conditions of consumers are expected to improve. Consumer optimism is expected to be lower than quarter II-2016.

þ Improvement in the condition of the consumer economy in the third quarter of 2016 was estimated due to an increase in income.