October 26, 2023
Confidence in manufacturing lower …
The confidence indicator in Slovenia was lower in all three comparisons: at the monthly level by 1 percentage point (p.p.), at the annual level by 2 p.p. and compared to the long-term average by 11 p.p.
The monthly decrease was influenced by the overall order books indicator and the stock of finished products indicator (down by 4 p.p. each), while the expected production indicator increased by 6 p.p.
Over a third (41%) of the enterprises reported uncertain economic conditions as the main limiting factor in their activity (6 p.p. fewer than in October 2022), followed by insufficient foreign demand (35%, 10 p.p. more) and shortage of skilled labour (33%, 1 p.p. more).
The current capacity indicator was 82.2%, 1.0 p.p. lower than in July 2023. The assessment of current production capacities indicator improved by 7 p.p., while the new orders indicator decreased by 2 p.p. Assessment of the competitive position deteriorated on the domestic market (by 3 p.p.), on EU markets it remained unchanged, while on non-EU markets it went up by 1 p.p.
… in retail trade lower …
The confidence indicator was 2 p.p. lower at the monthly level, 1 p.p. above the long-term average and 4 p.p. higher than last October.
Most of the indicators increased, with the exception of the expected sales indicator, which also had a significant impact on the decrease in the confidence indicator.
The following factors most often limited activity: competition in the sector (44% of enterprises, 1 p.p. more than in October 2022), high labour costs (36%, 4 p.p. more) and insufficient demand (23%, 5 p.p. more). Those three indicators have similar values as in July.
… in construction lower …
The confidence indicator was 3 p.p. lower than in the previous month, and 9 p.p. lower than in October 2022, but 18 p.p. above the long-term average.
The monthly decrease was influenced by both confidence indicators, the overall order books and the employment expectations (the former was lower by 5 p.p. and the latter by 2 p.p.).
Most construction enterprises stated shortage of skilled labour as the main limiting factor in their activities (53% of enterprises, the same as last October). This was followed by high cost of material (45%, 17 p.p. fewer) and high cost of labour (40%, 2 p.p. more).
… but in services slightly higher
The confidence indicator increased by 1 p.p. at the monthly level. At the annual level, it was the same and 3 p.p. above the long-term average.
The expected demand indicator improved the most, while the expected employment indicator worsened, each by 3 p.p.
Most often activities were limited by labour shortages (36%, 9 p.p. more than in October 2022) and insufficient demand (27%, equal). A third of enterprises operated without restrictions (2 p.p. more). The labour shortage factor reached its highest value in the entire observation period; it was 1 p.p. higher than in July.
Source: Statistical Office of the Republic of Slovenia
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