Business tendency, July 2023
Confidence slightly up only in construction
The confidence indicator went down in manufacturing, services and retail trade, and up in construction. The main limiting factor in production was uncertain economic conditions, in retail trade competition in the sector, in construction shortage of skilled labour and in services labour shortages.
Lower confidence in manufacturing …
The confidence indicator was lower in all three comparisons: by 1 percentage point (p.p.) compared to June 2023, and by 11 p.p. each compared to July 2022 and to the long-term average.
The monthly decrease was influenced by the expected production indicator (down by 4 p.p.) and the overall order books indicator (down by 1 p.p.), while the stock of finished products remained unchanged. Despite the lower confidence indicator, the uncertainty indicator remained unchanged compared to the previous month.
37% of the enterprises reported uncertain economic conditions as the main limiting factor in their activity (the same as in July 2022), followed by shortage of skilled labour (32%, 3 p.p. more) and insufficient foreign demand (32%, 15 p.p. more).
The current capacity indicator was 83.2%, 1.1 p.p. lower than in April 2023. The assessment of current production capacities indicator improved by 6 p.p., while the new orders indicator decreased by 3 p.p. Assessment of the competitive position on the domestic market remained unchanged, while on EU markets and on non-EU markets it deteriorated (by 2 p.p. and 1 p.p., respectively).
… as well as in retail trade
The value of the confidence indicator was lower in all three comparisons: by 16 p.p. at the monthly level, by 25 p.p. at the annual level and by 12 p.p. compared to the long-term average.
All the monitored indicators for retail trade have deteriorated. The indicators of sales and volume of stocks deteriorated the most, by 23 and 21 p.p., respectively. Uncertainty was also higher compared to the previous month (up by 5 p.p.).
The following factors most often limited activity: competition in the sector (43% of enterprises, 1 p.p. more than in July 2022), high labour costs (36%, 3 p.p. more) and insufficient demand (23%, 2 p.p. more).
In construction slightly higher
The confidence indicator was 1 p.p. higher than in the previous month, 3 p.p. lower than in July 2022, and 21 p.p. above the long-term average.
Even though the monitored indicators improved (by 1 p.p.), the assessment of building activity and price expectations indicators decreased (by 8 and 5 p.p., respectively). The uncertainty indicator also shows a slight deterioration, as it was higher by 1 p.p.
Most construction enterprises stated shortage of skilled labour as the main limiting factor in their activities (51% of enterprises, 2 p.p. more than in July 2022). This was followed by high cost of material (47%, 17 p.p. fewer). 44% of enterprises stated high cost of labour as the limiting factor, which is one of the highest percentages of enterprises since we started conducting the survey.
In services lower
The confidence indicator decreased by 2 p.p. at the monthly level and by 4 p.p. at the annual level. Compared to the long-term average, it was 2 p.p. higher.
The demand and expected demand indicators worsened the most (by 4 p.p. each). Uncertainty was also higher than in the previous month (by 8 p.p.).
Most often activities were limited by labour shortages (35%, 1 p.p. more than in July 2022) and insufficient demand (23%, 1 p.p. fewer). 30% of enterprises operated without restrictions (3 p.p. more). The labour shortage factor reached its highest value in the entire observation period.
Tables with the latest data are available in the SiStat Database.
The confidence indicator was lower in all three comparisons: by 1 percentage point (p.p.) compared to June 2023, and by 11 p.p. each compared to July 2022 and to the long-term average.
The monthly decrease was influenced by the expected production indicator (down by 4 p.p.) and the overall order books indicator (down by 1 p.p.), while the stock of finished products remained unchanged. Despite the lower confidence indicator, the uncertainty indicator remained unchanged compared to the previous month.
37% of the enterprises reported uncertain economic conditions as the main limiting factor in their activity (the same as in July 2022), followed by shortage of skilled labour (32%, 3 p.p. more) and insufficient foreign demand (32%, 15 p.p. more).
The current capacity indicator was 83.2%, 1.1 p.p. lower than in April 2023. The assessment of current production capacities indicator improved by 6 p.p., while the new orders indicator decreased by 3 p.p. Assessment of the competitive position on the domestic market remained unchanged, while on EU markets and on non-EU markets it deteriorated (by 2 p.p. and 1 p.p., respectively).
… as well as in retail trade
The value of the confidence indicator was lower in all three comparisons: by 16 p.p. at the monthly level, by 25 p.p. at the annual level and by 12 p.p. compared to the long-term average.
All the monitored indicators for retail trade have deteriorated. The indicators of sales and volume of stocks deteriorated the most, by 23 and 21 p.p., respectively. Uncertainty was also higher compared to the previous month (up by 5 p.p.).
The following factors most often limited activity: competition in the sector (43% of enterprises, 1 p.p. more than in July 2022), high labour costs (36%, 3 p.p. more) and insufficient demand (23%, 2 p.p. more).
In construction slightly higher
The confidence indicator was 1 p.p. higher than in the previous month, 3 p.p. lower than in July 2022, and 21 p.p. above the long-term average.
Even though the monitored indicators improved (by 1 p.p.), the assessment of building activity and price expectations indicators decreased (by 8 and 5 p.p., respectively). The uncertainty indicator also shows a slight deterioration, as it was higher by 1 p.p.
Most construction enterprises stated shortage of skilled labour as the main limiting factor in their activities (51% of enterprises, 2 p.p. more than in July 2022). This was followed by high cost of material (47%, 17 p.p. fewer). 44% of enterprises stated high cost of labour as the limiting factor, which is one of the highest percentages of enterprises since we started conducting the survey.
In services lower
The confidence indicator decreased by 2 p.p. at the monthly level and by 4 p.p. at the annual level. Compared to the long-term average, it was 2 p.p. higher.
The demand and expected demand indicators worsened the most (by 4 p.p. each). Uncertainty was also higher than in the previous month (by 8 p.p.).
Most often activities were limited by labour shortages (35%, 1 p.p. more than in July 2022) and insufficient demand (23%, 1 p.p. fewer). 30% of enterprises operated without restrictions (3 p.p. more). The labour shortage factor reached its highest value in the entire observation period.
Tables with the latest data are available in the SiStat Database.
Monthly changes in the value of confidence indicators, Slovenia, July 2023
METHODOLOGICAL NOTE
Data are seasonally adjusted.
Additional explanations are available in the methodological explanations.
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.
Additional explanations are available in the methodological explanations.
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.
.jpg)
