Business tendency, November 2022

Confidence in all economic sectors higher

At the monthly level, confidence indicators improved in all four economic sectors, the most in services.

  • 24 November 2022 at 10:30
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  • final data
Confidence in manufacturing up

At the monthly level, the confidence indicator increased by 4 percentage points (p.p.). Compared to November 2021 and the long-term average, it dropped by 12 p.p. and 5 p.p., respectively.

Improvement in the confidence indicator at the monthly level was influenced by expected production and overall order books (the former by 6 p.p. and the latter by 5 p.p.), while the stocks of finished products deteriorated by 1 p.p.

A quarter of manufacturing enterprises plan to invest more in 2023

In November 2022, 32% of enterprises report that investments increased this year compared to the previous year, 17% that they decreased, while 25% of enterprises report that investments will increase next year and 14% of enterprises that they will decrease.

Regarding investments, directors report that this year they invested the most in the replacement of worn-out buildings or equipment (69% of enterprises), followed by capacity expansion (34% of enterprises), process rationalization (29% of enterprises) and other (14% of enterprises). For 2023, similarly to this year, they plan to invest the most in the replacement of worn-out buildings or equipment (68% of enterprises, 1 p.p. less than this year), followed by capacity expansion (35%, 1 p.p. more), process rationalization (32%, 3 p.p. more), and other (12%, 2 p.p. less).

56% of enterprises believe that this year's investments were influenced by technical factors, 34% that investment is driven by demand, 19% by financial conditions and 18% by other factors. For next year, investments will also be encouraged the most by technical factors, which was reported by 54% of enterprises, followed by demand (39% of enterprises), financial conditions (21% of enterprises) and other factors (22% of enterprises).

Confidence higher in retail trade …

After three consecutive months of decline, the value of the confidence indicator increased by 3 p.p. at the monthly level and by 11 p.p. at the annual level. Compared to the long-term average, it was 5 p.p. higher.

The increase was mainly influenced by the improvement of expected sales and sales indicators (up by 12 p.p. and 8 p.p., respectively).

… in construction

The confidence indicator was higher in all three comparisons: by 4 percentage points (p.p.) compared to October 2022, by 2 p.p. compared to November 2021 and by 33 p.p. compared to the long-term average.

One component of the construction indicator improved and the other declined, namely overall order books improved by 9 p.p., while employment expectation declined by 1 p.p.

… and in services

After two consecutive months of decline, the value of the confidence indicator increased by 5 p.p. at the monthly level, and by 3 p.p. at the annual level, and was 9 p.p. above the long-term average.

The improvement of the confidence indicator was influenced by all three components of the indicator: demand, expected demand and business situation (by 6 p.p., 5 p.p. and 4 p.p., respectively).

Similar situation as regards investment in services

24% of enterprises in services reported that investments in 2022 were higher than in 2021, 17% that they were lower, and for the next year 24% of enterprises report that investments will be higher than in 2022, and 14% of enterprises that they will be lower.

Most enterprises in these activities (72%) still invested in replacement of worn-out buildings or equipment in 2022, 28% of enterprises invested in capacity expansion, 17% in process rationalization and 10% in other. Compared to last year, the most pronounced reduction was in investments in replacement of worn-out buildings or equipment (down by 9 p.p.). The plans for next year are similar: 74% of enterprises plan to invest in replacement of worn-out buildings or equipment, 33% in capacity expansion, 21% in process rationalization, and 8% in other.

57% of enterprises believe that investments in 2022 were influenced by technical factors, 30% that investment was driven by demand, 20% by financial conditions, and 18% by other factors. Compared to last year, demand was higher (by 3 p.p.), while influence of other factors was similar. In 2023, too, investments will be encouraged the most by technical factors (by 53% of enterprises), followed by demand (32% of enterprises), financial conditions (25% of enterprises) and other factors (21% of enterprises).

Tables with the latest data are available in the SiStat Database.
Monthly changes in the value of confidence indicators, Slovenia, November 2022
Monthly changes in the value of confidence indicators, Slovenia, November 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.



When making use of the data and information of the Statistical Office of the Republic of Slovenia, always add: "Source: SURS". More: Copyright.