Indonesia consumers more confident in Feb as wages rise

JAKARTA (REUTERS) - Indonesia's consumers were more optimistic in February but had some concerns about the economy and the job outlook in the next six months, a survey by Bank Indonesia showed on Friday.

For the month, the consumer confidence index rose slightly to 116.8 from January's 116.2, with wage increases expected to encourage consumers to purchase more durable goods.

But the survey of 4,600 households in 18 major cities across the archipelago also reflected concerns over the outlook for the economy, in particular the availability of jobs and business activity.

Consumers expect a better weather and upcoming harvest seasons will ease pressure on prices.

The central bank said consumption grew strongly in tandem with consumer confidence and better purchasing power, helping the economy to expand 6.2 per cent in the first quarter of the year.

However, Bank Indonesia expect gross domestic product to tend to grow to be at the bottom of a target range of around 6.3 to 6.8 per cent.

The statistics bureau reported annual inflation accelerating in February to 5.3 per cent, but core inflation slowed to 4.29 per cent.