CONSUMER CONFIDENCE INDEX IN ARMENIA SLIPS 0.9 POINTS TO 53.5%

ARKA
March 27, 2008

YEREVAN, March 27. /ARKA/. Consumer confidence index in Armenia slipped
0.9 points at the first quarter of 2008 to 53.5%., Mertin Galstyan,
chief of Armenian Central Bank’s statistical unit, said on Thursday
at a press conference.

He said that consumer confidence index consists of two sub-indices –
current situation and expectations.

"Some decline in consumer confidence index was due to the fact that
the expectation sub-index of the 1st Q 2008 is lower than that of the
same quarter of the previous year, though current situation sub-index
was higher than that of the previous year’s 1st Q", Galstyan said.

He said that these indices will be taken into account in calculating
inflation enriching the present model.

"Inflation expectation plays an important role in outlining goals
on inflation. Indices make it possible to estimate consumers’
expectations", Galstyan said.

Consumer confidence index is an arithmetical mean of surveyed
consumers’ answers to the question about expected income, expenses
and occupation rate as well as about expected economic situation.

The Central Bank started surveying non-financial, financial
organizations and household economies in early 2005 to gauge changes
in current economic situation and to compare it with other periods
of time.

The CBA press office says 824 organizations functioning in industry,
construction and services sectors have been surveyed in Yerevan and
all the provinces of Armenia.

The poll is conducted through Internet, telecommunication and fax.

The index was calculated on a 100-point scale. Indices above 50 mean
high activeness. Indices below 50 show low activeness and index 50
points out unchanged situation.