Business tendency, November 2023
Higher confidence in construction and manufacturing
Confidence in construction and manufacturing is higher, in retail trade it is lower, and in services it is the same. Enterprises in the manufacturing and services invest the most in the replacement of worn-out buildings or equipment, followed by capacity expansion and process rationalization.
Confidence in manufacturing higher
At the monthly level, the confidence indicator increased by 3 percentage points (p.p.). Compared to November 2022 and the long-term average, it dropped by 2 p.p. and 8 p.p., respectively.
The monthly increase was influenced by the expected production indicator (up by 7 p.p.) and the stock of finished products indicator (up by 1 p.p.), while the overall order books indicator remained unchanged.
Investment in manufacturing
In November, 30% of enterprises reported that investments increased this year compared to the previous year, 23% that they decreased, while 24% of enterprises reported that investments will increase next year and 22% that they will decrease.
Regarding investments, directors reported that this year they invested the most in the replacement of worn-out buildings or equipment (72% of enterprises), followed by capacity expansion (30% of enterprises), process rationalization (23% of enterprises) and other (15% of enterprises). For 2024, similarly to this year, they plan to invest the most in the replacement of worn-out buildings or equipment (74% of enterprises, 2 p.p. more than this year), followed by capacity expansion (33%, 3 p.p. more), process rationalization (25%, 2 p.p. more), and other (13%, 5 p.p. fewer).
61% of enterprises believe that this year's investments were influenced by technical factors, 32% that investment is driven by demand, 20% by other factors and 15% by financial conditions. For next year, investments will also be encouraged the most by technical factors, which was reported by 60% of enterprises, followed by demand (37% of enterprises), financial conditions (19% of enterprises) and other factors (18% of enterprises).
Confidence in retail trade lower …
The confidence indicator decreased for the third month in a row. At the monthly level, the indicator was lower by 9 p.p., at the annual level by 15 p.p. and compared to the long-term average by 8 p.p.
The confidence indicator decreased mainly due to the lower sales and expected sales indicators (by 19 and 11 p.p., respectively).
… in construction higher …
The confidence indicator was 3 p.p. higher than in the previous month, 9 p.p. lower than in November 2022, and 21 p.p. above the long-term average.
The monthly increase was influenced by both confidence indicators: the overall order books and the employment expectations indicators (the former was higher by 2 p.p. and the latter by 4 p.p.).
… and in services at the same level
The confidence indicator did not change at the monthly level, was 6 p.p. lower at the annual level, and was 3 p.p. above the long-term average.
Most indicators improved, except the expected demand indicator, which decreased by 4 p.p. The business situation and capacity utilization indicators were unchanged.
Investment in services
22% of enterprises in services reported that investments in 2023 were higher than in 2022, and 12% that they were lower. For 2024, 22% of enterprises anticipate that investments will be higher than this year, and 9% that they will be lower.
Compared to last year, the most significant increase was recorded in the investment in the replacement of worn-out buildings or equipment (by 10 p.p.), which was reported by 82% of enterprises. This was followed by investment in capacity expansion with 27% (1 p.p. point fewer), process rationalization with 14% (3 p.p. fewer) and other with 5% (5 p.p. fewer). For next year, 82% of enterprises plan to invest in the replacement of worn-out buildings or equipment, 26% in capacity expansion, 17% in process rationalization and 10% in other.
59% of enterprises believe that investments were driven by technical factors, which is 2 p.p. more than last year. In 24% of enterprises (down by 6 p.p.) investment was driven by demand and in 19% by financial conditions (down by 1 p.p.). For next year, similar investment incentives are expected.
Tables with the latest data are available in the SiStat Database.
At the monthly level, the confidence indicator increased by 3 percentage points (p.p.). Compared to November 2022 and the long-term average, it dropped by 2 p.p. and 8 p.p., respectively.
The monthly increase was influenced by the expected production indicator (up by 7 p.p.) and the stock of finished products indicator (up by 1 p.p.), while the overall order books indicator remained unchanged.
Investment in manufacturing
In November, 30% of enterprises reported that investments increased this year compared to the previous year, 23% that they decreased, while 24% of enterprises reported that investments will increase next year and 22% that they will decrease.
Regarding investments, directors reported that this year they invested the most in the replacement of worn-out buildings or equipment (72% of enterprises), followed by capacity expansion (30% of enterprises), process rationalization (23% of enterprises) and other (15% of enterprises). For 2024, similarly to this year, they plan to invest the most in the replacement of worn-out buildings or equipment (74% of enterprises, 2 p.p. more than this year), followed by capacity expansion (33%, 3 p.p. more), process rationalization (25%, 2 p.p. more), and other (13%, 5 p.p. fewer).
61% of enterprises believe that this year's investments were influenced by technical factors, 32% that investment is driven by demand, 20% by other factors and 15% by financial conditions. For next year, investments will also be encouraged the most by technical factors, which was reported by 60% of enterprises, followed by demand (37% of enterprises), financial conditions (19% of enterprises) and other factors (18% of enterprises).
Confidence in retail trade lower …
The confidence indicator decreased for the third month in a row. At the monthly level, the indicator was lower by 9 p.p., at the annual level by 15 p.p. and compared to the long-term average by 8 p.p.
The confidence indicator decreased mainly due to the lower sales and expected sales indicators (by 19 and 11 p.p., respectively).
… in construction higher …
The confidence indicator was 3 p.p. higher than in the previous month, 9 p.p. lower than in November 2022, and 21 p.p. above the long-term average.
The monthly increase was influenced by both confidence indicators: the overall order books and the employment expectations indicators (the former was higher by 2 p.p. and the latter by 4 p.p.).
… and in services at the same level
The confidence indicator did not change at the monthly level, was 6 p.p. lower at the annual level, and was 3 p.p. above the long-term average.
Most indicators improved, except the expected demand indicator, which decreased by 4 p.p. The business situation and capacity utilization indicators were unchanged.
Investment in services
22% of enterprises in services reported that investments in 2023 were higher than in 2022, and 12% that they were lower. For 2024, 22% of enterprises anticipate that investments will be higher than this year, and 9% that they will be lower.
Compared to last year, the most significant increase was recorded in the investment in the replacement of worn-out buildings or equipment (by 10 p.p.), which was reported by 82% of enterprises. This was followed by investment in capacity expansion with 27% (1 p.p. point fewer), process rationalization with 14% (3 p.p. fewer) and other with 5% (5 p.p. fewer). For next year, 82% of enterprises plan to invest in the replacement of worn-out buildings or equipment, 26% in capacity expansion, 17% in process rationalization and 10% in other.
59% of enterprises believe that investments were driven by technical factors, which is 2 p.p. more than last year. In 24% of enterprises (down by 6 p.p.) investment was driven by demand and in 19% by financial conditions (down by 1 p.p.). For next year, similar investment incentives are expected.
Tables with the latest data are available in the SiStat Database.
Monthly changes in the value of confidence indicators, Slovenia, November 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.
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