Business tendency, January 2023
Confidence in retail trade, construction and services down
The confidence indicator went down in retail trade, construction and services. The average in 2022 was higher than in the previous year in retail trade, services and construction, and lower in manufacturing.
Manufacturing confidence indicator the same
The confidence indicator was the same as in the previous month. Compared to January 2022 and the long-term average, it was lower by 12 p.p. and 3 p.p., respectively.
Overall order books and stocks of finished products indicators improved (the former by 2 p.p. and the latter by 8 p.p.), while the expected production indicator worsened by 8 p.p. Compared to 2021, confidence was lower in 2022, namely the average of the indicator was lower by 8 p.p. (decline from 8 to 0 p.p.).
Over a third (39%) of the enterprises reported uncertain economic conditions as the main limiting factor in their activity (11 p.p. more than in January 2022), followed by shortage of skilled labour (32%, 2 p.p. fewer) and insufficient foreign demand (25%, 12 p.p. more).
The current capacity indicator was 82.8%, 0.9 p.p. lower than in October 2022. The assessment of current production capacities indicator decreased by 2 p.p., while the new orders indicator improved by 4 p.p. Assessment of the competitive position remained the same on the domestic market and deteriorated on EU markets (by 2 p.p.) and on non-EU markets (by 3 p.p.).
Lower in retail trade …
The confidence indicator decreased by 4 p.p. at the monthly level after two consecutive months of growth. It was 7 p.p. above the long-term average, while at the annual level, it was higher by 5 p.p.
The deterioration of confidence was influenced by a decrease in the sales and expected sales indicators. Compared to 2021, confidence was higher in 2022, namely the average of the indicator was higher by 15 p.p. (growth from 5 to 20 p.p.).
The following factors most often limited activity: competition in the sector (43% of enterprises, 3 p.p. fewer than in January 2022), high labour costs (35%, 3 p.p. more) and insufficient demand (21%, 2 p.p. fewer).
… in construction …
The confidence indicator was 4 p.p. lower than in the previous month, and 8 p.p. lower than in January 2022, but 28 p.p. above the long-term average.
The confidence indicator was lower due to deterioration of the employment expectation by 10 p.p., while the overall orders books improved by 2 p.p. The average confidence indicator for 2022 was 22 p.p., 4 p.p. higher than in 2021.
Most construction enterprises stated high cost of material as the main limiting factor in their activities (55% of enterprises, 1 p.p. more than in January 2022). This was followed by shortage of skilled labour (49%, 6 p.p. more) and high cost of labour (40%, 10 p.p. more).
… and in services
The confidence indicator decreased slightly at the monthly level (by 1 p.p.), while at the annual level it was higher by 3 p.p. and 7 p.p. higher than the long-term average.
The indicator was lower mainly due to lower expected demand. The average confidence indicator for 2022 was 17 p.p., 9 p.p. higher than in the previous year.
The factors limiting service activities most often were: labour shortages (31%, 7 p.p. more than in January 2022) and insufficient demand (31%, 3 p.p. more). 28% of enterprises operated without restrictions (2 p.p. more).
Tables with the latest data are available in the SiStat Database.
The confidence indicator was the same as in the previous month. Compared to January 2022 and the long-term average, it was lower by 12 p.p. and 3 p.p., respectively.
Overall order books and stocks of finished products indicators improved (the former by 2 p.p. and the latter by 8 p.p.), while the expected production indicator worsened by 8 p.p. Compared to 2021, confidence was lower in 2022, namely the average of the indicator was lower by 8 p.p. (decline from 8 to 0 p.p.).
Over a third (39%) of the enterprises reported uncertain economic conditions as the main limiting factor in their activity (11 p.p. more than in January 2022), followed by shortage of skilled labour (32%, 2 p.p. fewer) and insufficient foreign demand (25%, 12 p.p. more).
The current capacity indicator was 82.8%, 0.9 p.p. lower than in October 2022. The assessment of current production capacities indicator decreased by 2 p.p., while the new orders indicator improved by 4 p.p. Assessment of the competitive position remained the same on the domestic market and deteriorated on EU markets (by 2 p.p.) and on non-EU markets (by 3 p.p.).
Lower in retail trade …
The confidence indicator decreased by 4 p.p. at the monthly level after two consecutive months of growth. It was 7 p.p. above the long-term average, while at the annual level, it was higher by 5 p.p.
The deterioration of confidence was influenced by a decrease in the sales and expected sales indicators. Compared to 2021, confidence was higher in 2022, namely the average of the indicator was higher by 15 p.p. (growth from 5 to 20 p.p.).
The following factors most often limited activity: competition in the sector (43% of enterprises, 3 p.p. fewer than in January 2022), high labour costs (35%, 3 p.p. more) and insufficient demand (21%, 2 p.p. fewer).
… in construction …
The confidence indicator was 4 p.p. lower than in the previous month, and 8 p.p. lower than in January 2022, but 28 p.p. above the long-term average.
The confidence indicator was lower due to deterioration of the employment expectation by 10 p.p., while the overall orders books improved by 2 p.p. The average confidence indicator for 2022 was 22 p.p., 4 p.p. higher than in 2021.
Most construction enterprises stated high cost of material as the main limiting factor in their activities (55% of enterprises, 1 p.p. more than in January 2022). This was followed by shortage of skilled labour (49%, 6 p.p. more) and high cost of labour (40%, 10 p.p. more).
… and in services
The confidence indicator decreased slightly at the monthly level (by 1 p.p.), while at the annual level it was higher by 3 p.p. and 7 p.p. higher than the long-term average.
The indicator was lower mainly due to lower expected demand. The average confidence indicator for 2022 was 17 p.p., 9 p.p. higher than in the previous year.
The factors limiting service activities most often were: labour shortages (31%, 7 p.p. more than in January 2022) and insufficient demand (31%, 3 p.p. more). 28% of enterprises operated without restrictions (2 p.p. more).
Tables with the latest data are available in the SiStat Database.
Monthly changes in the value of confidence indicators, Slovenia, January 2023
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.
