CONSUMER CONFIDENCE INDEX DECLINES IN FIRST QUARTER OF 2006 COMPARED LAST QUARTER

Noyan Tapan
Mar 30 2006

YEREVAN, MARCH 30, NOYAN TAPAN. The composite economic indices of
the first quarter of 2006, which were calculated by the Central Bank
of Armenia (CBA), show a high activity: they are above 50 points,
which is quite positive. Head of the CBA Statistics Department Hakob
Zorian stated this at the March 30 press conference. According
to him, during the period under review, the business environment
index made 58.3 points in Armenia, the economic activity index –
70.5, and the consumer confidence index – 51.3. The first two of
the indicated indices grew by 7.8% and 31.5% respectively compared
with last quarter, while the third one declined by 0.4%. H. Zorian
assured that this decline is conditioned by the fact that the survey
participants assessed negatively the current economic situation. It was
noted the consimer confidence index also includes household incomes,
domestic expenditures and changes in employment. H. Zorian said
that in order to get the business environment index, the mean of
the organizations’ assessment of changes in risks and the overall
economic situation is calculated, while the economic activity index
– by calculating the mean of the organizations’ expectations of
production volumes, production orders and stocks. To recap, the CBA
has been conducting quarterly surveys of financial and nonfinancial
organizations, as well as households since 2005.

More than 600 organizations in industry, construction, trade and
service sector and 1,500 households participate in surveys.