Business tendency, Slovenia, April 2018
In April 2018 confidence up in retail trade, in services and in construction
In April 2018 the retail trade, services and construction confidence indicators were higher than in the previous month, while the manufacturing confidence indicator was lower.
Manufacturing confidence indicator lower for the third consecutive month
In April 2018 the manufacturing confidence indicator was 2 percentage points (p.p.) lower than in March 2018. Compared to April 2017 it was lower by 1 p.p. It was also 8 p.p. above the long-term average.
In April 2018 the manufacturing enterprises were less optimistic regarding production expectations in the next three months and regarding the level of overall order books, which influenced the decrease in the manufacturing indicator.
Among other indicators the export order books indicator and the selling price expectations indicator noticeably worsened (by 6 p.p. and 5 p.p., respectively), while the expected employment indicator improved (by 4 p.p.).
Shortage of skilled labour the largest so far
In April 2018 the current capacity indicator was 86.3%, 1.1 p.p. higher than in January 2018. In 70% of enterprises the capacity utilisation was over 80%.
Most of the quarterly indicators worsened, especially the new orders indicator (by 11 p.p.). The manufacturing enterprises were also more pessimistic in assessing their current production capacities according to the expected demand in the next 12 months. The competitive position on the domestic market and on the non-EU markets worsened (by 5 p.p. and 3 p.p., respectively), while the competitive position on the EU markets improved (by 2 p.p.).
The share of enterprises listing shortage of skilled labour as a factor limiting the production was the highest so far (36% of enterprises). Insufficient domestic demand and insufficient foreign demand continue to be significant limiting factors (as stated by 19% and 16% of enterprises, respectively). 23% of enterprises experienced no limits in their activity.
Investment in manufacturing higher
In April 2018, 97% of enterprises invested. Compared to November 2017 the share was 2 p.p. higher. Enterprises assess that this year investment will increase on average by 15% compared to 2017.
At the semi-annual level the present business situation indicator worsened by 4 p.p., while the expected business situation indicator improved by 8 p.p.
Retail trade confidence indicator higher than in the previous month
In April 2018 the retail trade confidence indicator was 8 p.p. higher than in March 2018. Compared to April 2017 it decreased by 1 p.p. and was 1 p.p. above the long-term average. The rise of the confidence indicator was influenced mostly by the sales and the expected sales indicators, which increased in April 2018.
In addition to the sales indicator, the selling prices indicator and the volume of stocks indicator also increased, while the business situation indicator remained stable. Among the expectation indicators the expected sales indicator and the expected orders indicator increased, while the expected employment indicator and the expected business situation indicator decreased. The expected selling prices indicator remained stable.
The most important factor limiting the enterprises in retail trade was competition in own sector (57%), followed by high costs of labour (36%) and low demand (25%). On the other hand, 12% of enterprises experienced no limits in their activity.
Construction confidence indicator higher than in the previous month
In April 2018 the construction confidence indicator was 1 p.p. higher than in March 2018 and 15 p.p. higher than in April 2017. It was also 41 p.p. above the long-term average.
At the monthly level most of the situation and expectation indicators improved, especially the assessment of building activity indicator (by 5 p.p.), the employment indicator and the business situation indicator (each by 4 p.p.).
Bad weather conditions remain the most frequent limiting factor among construction enterprises (as stated by 42% of enterprises), followed by shortage of skilled labour and competition in own sector (37% each). Other important limiting factors were high cost of labour and high cost of material (28% and 22% of enterprises, respectively). 9% of enterprises experienced no limits in their activity.
Services confidence indicator higher than in the previous month
In April 2018 the services confidence indicator was 3 p.p. higher than in March 2018. Compared to April 2017 it decreased by 2 p.p. and was 16 p.p. above the long-term average.
The situation and expectation indicators increased, except the employment indicator and the expected selling prices indicator, which decreased. The capacity utilisation indicator remained stable.
The most important factor limiting the enterprises in services was insufficient demand (32%), followed by financial constraints (21%), shortage of labour force (19%) and other limitations (10%). On the other hand, 29% of enterprises experienced no limits in their activity.
In April 2018 the manufacturing confidence indicator was 2 percentage points (p.p.) lower than in March 2018. Compared to April 2017 it was lower by 1 p.p. It was also 8 p.p. above the long-term average.
In April 2018 the manufacturing enterprises were less optimistic regarding production expectations in the next three months and regarding the level of overall order books, which influenced the decrease in the manufacturing indicator.
Among other indicators the export order books indicator and the selling price expectations indicator noticeably worsened (by 6 p.p. and 5 p.p., respectively), while the expected employment indicator improved (by 4 p.p.).
Shortage of skilled labour the largest so far
In April 2018 the current capacity indicator was 86.3%, 1.1 p.p. higher than in January 2018. In 70% of enterprises the capacity utilisation was over 80%.
Most of the quarterly indicators worsened, especially the new orders indicator (by 11 p.p.). The manufacturing enterprises were also more pessimistic in assessing their current production capacities according to the expected demand in the next 12 months. The competitive position on the domestic market and on the non-EU markets worsened (by 5 p.p. and 3 p.p., respectively), while the competitive position on the EU markets improved (by 2 p.p.).
The share of enterprises listing shortage of skilled labour as a factor limiting the production was the highest so far (36% of enterprises). Insufficient domestic demand and insufficient foreign demand continue to be significant limiting factors (as stated by 19% and 16% of enterprises, respectively). 23% of enterprises experienced no limits in their activity.
Investment in manufacturing higher
In April 2018, 97% of enterprises invested. Compared to November 2017 the share was 2 p.p. higher. Enterprises assess that this year investment will increase on average by 15% compared to 2017.
At the semi-annual level the present business situation indicator worsened by 4 p.p., while the expected business situation indicator improved by 8 p.p.
Retail trade confidence indicator higher than in the previous month
In April 2018 the retail trade confidence indicator was 8 p.p. higher than in March 2018. Compared to April 2017 it decreased by 1 p.p. and was 1 p.p. above the long-term average. The rise of the confidence indicator was influenced mostly by the sales and the expected sales indicators, which increased in April 2018.
In addition to the sales indicator, the selling prices indicator and the volume of stocks indicator also increased, while the business situation indicator remained stable. Among the expectation indicators the expected sales indicator and the expected orders indicator increased, while the expected employment indicator and the expected business situation indicator decreased. The expected selling prices indicator remained stable.
The most important factor limiting the enterprises in retail trade was competition in own sector (57%), followed by high costs of labour (36%) and low demand (25%). On the other hand, 12% of enterprises experienced no limits in their activity.
Construction confidence indicator higher than in the previous month
In April 2018 the construction confidence indicator was 1 p.p. higher than in March 2018 and 15 p.p. higher than in April 2017. It was also 41 p.p. above the long-term average.
At the monthly level most of the situation and expectation indicators improved, especially the assessment of building activity indicator (by 5 p.p.), the employment indicator and the business situation indicator (each by 4 p.p.).
Bad weather conditions remain the most frequent limiting factor among construction enterprises (as stated by 42% of enterprises), followed by shortage of skilled labour and competition in own sector (37% each). Other important limiting factors were high cost of labour and high cost of material (28% and 22% of enterprises, respectively). 9% of enterprises experienced no limits in their activity.
Services confidence indicator higher than in the previous month
In April 2018 the services confidence indicator was 3 p.p. higher than in March 2018. Compared to April 2017 it decreased by 2 p.p. and was 16 p.p. above the long-term average.
The situation and expectation indicators increased, except the employment indicator and the expected selling prices indicator, which decreased. The capacity utilisation indicator remained stable.
The most important factor limiting the enterprises in services was insufficient demand (32%), followed by financial constraints (21%), shortage of labour force (19%) and other limitations (10%). On the other hand, 29% of enterprises experienced no limits in their activity.
Monthly changes in the value of confidence indicators, Slovenia, April 2018
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.
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