OREANDA-NEWS. November 10, 2009. The Central Bank of Azerbaijan is ongoing monitoring of real sector of country’s economy making a composite indicator of Business Confidence Index.

CBA general director Khagani Abdullayev has stated that the CBA conducts monitoring of real sector among about 200 enterprises – around 100 enterprises of trade sector, 60 enterprisers of non-oil industry and 40 enterprises of services sector.

“From each industry we select the largest ones on volume of sales and the level of employment,” Abdullayev said.

The methodology of the poll was made on the basis of the recommendations of the Central Bank of Switzerland.

“We make a composite indicator of Business Confidence Index. The indicator includes about 6 or 7 key indices. We conduct polls on the occasion of volume of sales for previous three months, new orders (for enterprises of trade sector and industrial sector), and also on the occasion of expectations on prices and sales for the next three months. Each index has its own specific weight. Composite indicator is a good indice of business market conditions in the country,” Abdullayev said.

The CBA also indicates a range of interesting tendencies.

“For example, enterprises of trade sector expect growth of sales in the following three months.  They expect rise of sales, certain growth of employment (the more sales the more people they are going to hire). We also observed reduction of reserves of unsold products over the last three months.

It is observed mainly in non-oil industry. In the area of trade the reserves in automobile sales keep at the certain level and reserves of household electric appliances and furniture reduce. As we were told, it is linked mainly with seasonal factor. The general composite index has positive tendency for the last 3 months – sales grow and production volume grow either,” Abdullayev said.

According to the adopted methodology, the respondents should not call any figures to the CBA. They answer “yes”, “no” or “stable” to our questions. We receive more “yes” answers today,” Abdulllayev said.