Business tendency, Slovenia, October 2017

In October 2017 confidence indicators higher than in September 2017

Compared to the previous month, in October 2017 confidence increased in all sectors.

  • 25 October 2017 at 10:30
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  • final data
Manufacturing confidence indicator higher than in the previous month
In October 2017 the manufacturing confidence indicator was 2 percentage points (p.p.) higher than in September 2017. Compared to October 2016 it increased by 6 p.p. and was 13 p.p. above the long-term average.
At the monthly level the biggest increase among situation indicators was observed in the production indicator and the stocks of finished products indicator (each by 6 p.p.). The overall order books indicator decreased (by 1 p.p.).
The expectation indicators mostly worsened at the monthly level, especially the expected employment indicator and the expected export order books indicator (each by 4 p.p.). However the production expectations indicator improved (by 1 p.p.).

Shortage of skilled labour force in manufacturing
In October 2017 the current capacity indicator was 84.7%, 0.8 p.p. lower than in July 2017. In 64% of enterprises the capacity utilisation was over 80%. The indicator of assessment of current production capacities according to the expected demand in the next 12 months improved by 3 p.p. over July 2017.
The competitive position on the domestic market and on non-EU markets improved in the last three months (by 1 and 5 p.p, respectively). On EU markets it worsened by 5 p.p.
In October 2017 the most important factor limiting the production continued to be shortage of skilled labour, as stated by 32% of enterprises (35% in July 2017 and 26% in October 2016). Insufficient domestic demand and insufficient foreign demand are also important factors limiting the production (21% and 19% in October 2017, respectively). Both factors are limiting fewer enterprises than in October 2016 when 34% of enterprises were limited by insufficient domestic demand and 28% by insufficient foreign demand. 26% of enterprises experienced no limits in their activity.

Retail trade confidence indicator higher than in the previous month
In October 2017 the retail trade confidence indicator was 4 p.p. higher than in September 2017. Compared to October 2016 it increased by 18 p.p. and was 16 p.p. above the long-term average.
The values of the situation indicators mostly increased, except the selling prices indicator, which decreased (by 1 p.p.). The values of the expectation indicators were higher than in the previous month, except the selling prices expectation indicator and the expected business situation indicator.
The most important factor limiting the enterprises in retail trade was competition in own sector (59%), followed by high costs of labour (38%) and low demand (26%). On the other hand, 10% of enterprises experienced no limits in their activity.

Construction confidence indicator higher than in the previous month
In October 2017 the construction confidence indicator was 5 p.p. higher than in September 2017 and 26 p.p. higher than in October 2016. It was also 41 p.p. above the long-term average.
The values of the situation indicators mostly increased, especially the business situation indicator (by 7 p.p.). The only exception was the technical capacity indicator, which decreased by 5 p.p.
The values of the expectation indicators also increased. The largest increase was recorded in the employment expectations indicator (by 6 p.p.).
In October 2017 most enterprises in construction were limited by competition in own sector (43% of enterprises). Other important factors were shortage of skilled labour (34%), high cost of labour (30%), high cost of material (27%) and bad weather conditions (22%). 10% of enterprises experienced no limits in their activity.

Services confidence indicator higher than in the previous month
In October 2017 the services confidence indicator was 4 p.p. higher than in September 2017. Compared to October 2016 it increased by 6 p.p. and was 18 p.p. above the long-term average.
The situation indicators and the expectation indicators increased compared to the previous month, except the expected employment indicator, which decreased. For the fourth consecutive month, the capacity utilization indicator remained unchanged.
The most important factor limiting the enterprises in services was insufficient demand (32%), followed by financial constraints (18%), shortage of labour force (17%) and other limitations (11%). On the other hand, 30% of enterprises experienced no limits in their activity.
Chart 1: Monthly changes in the value of confidence indicators, Slovenia, October 2017
Chart 1: Monthly changes in the value of confidence indicators, Slovenia, October 2017
Source: SURS
METHODOLOGICAL NOTE
Data are seasonally adjusted.
When making use of the data and information of the Statistical Office of the Republic of Slovenia, always add: "Source: SURS". More: Copyright.