Business tendency, July 2022

Confidence lower in construction, manufacturing and services

The confidence indicator went down in construction, manufacturing and services, and up in retail trade. The main limiting factor in production was uncertain economic conditions, in retail trade competition in the sector, in construction high cost of material and in services labour shortages.

  • 22 July 2022 at 10:30
  • |
  • final data
Confidence in manufacturing lower ...

The confidence indicator was lower in all three comparisons: by 1 percentage point (p.p.) compared to June 2022, by 12 p.p. compared to July 2021 and by 1 p.p. compared to the long-term average.

The monthly decrease was influenced by the overall order books indicator (down by 1 p.p.) and the expected production indicator (down by 5 p.p.), while the stock of finished products indicator increased by 4 p.p.

37% of the enterprises reported uncertain economic conditions as the main limiting factor in their activity (10 p.p. more than in July 2021), followed by shortage of skilled labour (35%, 5 p.p. more) and shortage of raw materials (30%, 1 p.p. fewer).

The current capacity indicator was 84.3%, 1.2 p.p. lower than in April 2022. The assessment of current production capacities indicator improved by 2 p.p., while the new orders indicator decreased by 14 p.p. Assessment of the competitive position deteriorated on the domestic market (by 4 p.p.) and on EU markets (by 2 p.p.), while on non-EU markets it improved by 3 p.p.

… in retail trade higher ...

The confidence indicator in retail trade was higher at the monthly and at the annual level, by 2 p.p. and 11 p.p., respectively, It was also higher than the long-term average (by 14 p.p.).

The increase in the confidence indicator was mainly influenced by the improvement in the volume of stocks indicator (by 11 p.p.).

The activity was most often limited by the following factors: competition in the sector (42% of enterprises, 2 p.p. fewer than in July 2021), high labour costs (33%, 2 p.p. more), and low demand (21%, 4 p.p. fewer).

… in construction lower ...

The confidence indicator was 2 p.p. lower than in the previous month, 3 p.p. lower than in July 2021, but 26 p.p. higher above the long-term average.

The confidence indicator was lower due to deterioration of the overall order books by 6 p.p., while the employment expectation had no impact.

Most construction enterprises stated high cost of material as the main limiting factor in their activities (64% of enterprises, 12 p.p. more than in July 2021). This was followed by shortage of skilled labour (53%, 9 p.p. more) and high cost of labour (37%, 10 p.p. more).

… in services lower

At the monthly level, the services confidence indicator was 2 p.p. lower. Compared to July 2021 and the long-term average, it was higher by 4 p.p. and 6 p.p., respectively.

The confidence indicator decreased at the monthly level due to lower expected demand indicator (by 7 p.p.).

The activity was most often constrained by the following factors: labour shortages (34% of enterprises, 9 p.p. more than in July 2021), and insufficient demand (24%, 4 p.p. fewer). 27% of enterprises (1 p.p. more) operated without restrictions.


Tables with the latest data are available in the SiStat Database.
Monthly changes in the value of confidence indicators, Slovenia, July 2022
Monthly changes in the value of confidence indicators, Slovenia, July 2022
METHODOLOGICAL NOTE
Data are seasonally adjusted.

The business surveys are co-financed by the European Commission. However, the European Commission accepts no responsibility or liability whatsoever with regard to the material published in this document.



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