Business tendency, October 2022
Confidence up only in construction
The confidence indicator went down in retail trade, manufacturing and services, and up in construction. The main limiting factors were uncertain economic conditions in manufacturing, competition in the sector in retail trade, high cost of material in construction and labour shortages in services.
Confidence in manufacturing lower
The confidence indicator was lower in all three comparisons: at the monthly level by 2 percentage points (p.p.), at the annual level by 13 p.p. and compared to the long-term average by 10 p.p.
The monthly decrease was influenced by the overall order books indicator (down by 10 p.p.) and the stock of finished products indicator (down by 1 p.p.), while the expected production indicator increased by 5 p.p. The uncertainty indicator increased by 4 p.p. compared to September 2022 and decreased by 4 p.p. compared to March 2022, when its value was the highest (34 p.p.).
Almost half (47%) of the enterprises reported uncertain economic conditions as the main limiting factor in their activity (19 p.p. more than in October 2021), followed by shortage of skilled labour (32%, 3 p.p. fewer) and insufficient foreign demand (25%, 11 p.p. more).
The current capacity indicator was 83.7%, 0.6 p.p. lower than in July 2022. The assessment of current production capacities indicator improved by 10 p.p., while the new orders indicator decreased by 7 p.p. Assessment of the competitive position remained the same on the domestic market and deteriorated on EU markets (by 6 p.p.) and on non-EU markets (by 4 p.p.).
Confidence in retail trade down
The confidence indicator decreased by 3 p.p. at the monthly level and increased by 11 p.p. at the annual level. Compared to the long-term average, it was only 1 p.p. higher.
The decrease was mainly influenced by the deterioration of the expected sales and sales indicators (down by 9 and 4 p.p., respectively). The uncertainty indicator was 3 p.p. higher than in March 2022, when the indicator was the highest since we started to measure it (May 2021).
The activity was most often limited by the following factors: competition in the sector (43% of enterprises, 2 p.p. fewer than in October 2021), high labour costs (32%, 2 p.p. fewer), and low demand (18%, 2 p.p. fewer).
Confidence in construction up
The confidence indicator was 5 p.p. higher than in the previous month, 5 p.p. lower than in October 2021, and 28 p.p. above the long-term average.
One component of the indicator improved and the other declined, namely employment expectation improved by 13 p.p., while overall order books declined by 3 p.p. The uncertainty indicator was also lower, namely by 1 p.p. compared to September 2022, and by 4 p.p. compared to March 2022, when its value was the highest (23 p.p.).
Most construction enterprises stated high cost of material as the main limiting factor in their activities (62% of enterprises, 4 p.p. more than in October 2021), followed by shortage of skilled labour (53%, 4 p.p. more) and high cost of labour (38%, 5 p.p. more).
Confidence in services also lower
The confidence indicator decreased at the monthly and annual level, by 1 and 3 p.p., respectively, while it was 4 p.p. above the long-term average.
The deterioration of the confidence indicator was mainly influenced by the demand indicator, which declined by 6 p.p. The uncertainty indicator was also lower, namely by 7 p.p. compared to the previous month and by 11 p.p. compared to March, when its value was the highest (34 p.p.). Capacity utilization was 92% and has been unchanged for four months.
The activity was most often constrained by the following factors: labour shortages (27% of enterprises, 3 p.p. more than in October 2021), and insufficient demand (27%, 2 p.p. fewer). 31% of enterprises (6 p.p. more) operated without restrictions.
Tables with the latest data are available in the SiStat Database.
The confidence indicator was lower in all three comparisons: at the monthly level by 2 percentage points (p.p.), at the annual level by 13 p.p. and compared to the long-term average by 10 p.p.
The monthly decrease was influenced by the overall order books indicator (down by 10 p.p.) and the stock of finished products indicator (down by 1 p.p.), while the expected production indicator increased by 5 p.p. The uncertainty indicator increased by 4 p.p. compared to September 2022 and decreased by 4 p.p. compared to March 2022, when its value was the highest (34 p.p.).
Almost half (47%) of the enterprises reported uncertain economic conditions as the main limiting factor in their activity (19 p.p. more than in October 2021), followed by shortage of skilled labour (32%, 3 p.p. fewer) and insufficient foreign demand (25%, 11 p.p. more).
The current capacity indicator was 83.7%, 0.6 p.p. lower than in July 2022. The assessment of current production capacities indicator improved by 10 p.p., while the new orders indicator decreased by 7 p.p. Assessment of the competitive position remained the same on the domestic market and deteriorated on EU markets (by 6 p.p.) and on non-EU markets (by 4 p.p.).
Confidence in retail trade down
The confidence indicator decreased by 3 p.p. at the monthly level and increased by 11 p.p. at the annual level. Compared to the long-term average, it was only 1 p.p. higher.
The decrease was mainly influenced by the deterioration of the expected sales and sales indicators (down by 9 and 4 p.p., respectively). The uncertainty indicator was 3 p.p. higher than in March 2022, when the indicator was the highest since we started to measure it (May 2021).
The activity was most often limited by the following factors: competition in the sector (43% of enterprises, 2 p.p. fewer than in October 2021), high labour costs (32%, 2 p.p. fewer), and low demand (18%, 2 p.p. fewer).
Confidence in construction up
The confidence indicator was 5 p.p. higher than in the previous month, 5 p.p. lower than in October 2021, and 28 p.p. above the long-term average.
One component of the indicator improved and the other declined, namely employment expectation improved by 13 p.p., while overall order books declined by 3 p.p. The uncertainty indicator was also lower, namely by 1 p.p. compared to September 2022, and by 4 p.p. compared to March 2022, when its value was the highest (23 p.p.).
Most construction enterprises stated high cost of material as the main limiting factor in their activities (62% of enterprises, 4 p.p. more than in October 2021), followed by shortage of skilled labour (53%, 4 p.p. more) and high cost of labour (38%, 5 p.p. more).
Confidence in services also lower
The confidence indicator decreased at the monthly and annual level, by 1 and 3 p.p., respectively, while it was 4 p.p. above the long-term average.
The deterioration of the confidence indicator was mainly influenced by the demand indicator, which declined by 6 p.p. The uncertainty indicator was also lower, namely by 7 p.p. compared to the previous month and by 11 p.p. compared to March, when its value was the highest (34 p.p.). Capacity utilization was 92% and has been unchanged for four months.
The activity was most often constrained by the following factors: labour shortages (27% of enterprises, 3 p.p. more than in October 2021), and insufficient demand (27%, 2 p.p. fewer). 31% of enterprises (6 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, October 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
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
When making use of the data and information of the Statistical Office of the Republic of Slovenia, always add: "Source: SURS". More: Copyright.
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