Household consumption estimated to increase in third quarter

Bank Indonesia estimated that household consumption rose in the third quarter of this year from 5.04 percent of the countrys Gross Domestic Products (GDP) in the second quarter of this year.

One of the factors causing the increase was high consumption during Idul Fitri 2016, Executive Director of Statistic Department of the central bank Hendy Sulistiowati said here on Thursday.

Increase in household consumption was also attributable to higher Consumer Confidence Index (IKK) that rose to 112.5 points from 111.6 points in the second quarter, Hendi said.

“The quarterly increase in IKK, normally would result in an increase in household consumption,” she said.

Household consumption has been the largest contributor to the countrys GDP accounting for 55.9 percent, followed by Gross Fixed Capital Formation (PMTB).

Though rising quarterly, IKK fell monthly . In September IKK was 110 points down from 113.3 points in August.