Household Consumption Slows In Quarter II-2024, Here's The Trigger

JAKARTA - The Central Statistics Agency (BPS) reported a 4.93 percent growth in household consumption in the second quarter of 2024 year on year (yoy).

This growth slowed down when compared to the same period last year which reached 5.22 percent.

Deputy for Balance and Statistics Analysis of BPS Moh. Edy Mahmud said that the growth in household consumption slowed down due to some commodities such as clothing and transportation experiencing growth that did not grow as high as the same period last year.

"So for sub-groups or clothing and transportation commodities, growth has been growth, although positive but not as high as last year's growth. In addition, there was also a shift in Ramadan last year in April, then this year most of it was in March and April. Ramadan's shift affects its pattern, so that Idul Fitri consumption has been carried out in the first quarter," he said at a press conference, Monday, August 5.

According to Edy, the slowdown can be seen from the slowing trade and retail index as well as the selling of slow motorbikes.

Edy said that household consumption was still the largest contributor to Indonesia's economic growth, with a contribution of 54.53 percent.

Edy said household consumption grew by 4.93 percent higher when compared to the first quarter of 2024 which reached 4.91 percent.

"This growth indicates that domestic demand is still strong and people's purchasing power," he said.

He added that household consumption growth in the second quarter of 2024 was driven by celebrations of religious holidays such as Eid al-Fitr, Vesak, the Ascension of Isa Al Masih, and Eid al-Adha and driven by increased community mobility during the religious holidays and school holidays.

Meanwhile, the sub-components for household consumption that grow high are transportation and communication as well as restaurants and hotels.

For information, BPS reported that economic growth in the second quarter of 2024 reached 5.05 percent year on year (yoy). This growth slowed down when compared to the previous quarter which reached 5.11 percent (yoy).