Business tendency, Slovenia, July 2018
In July 2018 confidence down in most activities
In July 2018 the manufacturing, retail trade and construction confidence indicators were lower than in the previous month, while the services confidence indicator did not change.
Manufacturing confidence indicator lower than in the previous month
In July 2018 the manufacturing confidence indicator decreased by 3 percentage points (p.p.) at both the monthly and the annual level. The negative trend continues, as the confidence indicator has yet to increase at the monthly level since January 2018 and the value of the indicator in July 2018 was the lowest in the last two years.
The manufacturing confidence indicator worsened at the monthly level due to the overall order books indicator and the production expectations indicator (they decreased by 7 and 5 p.p., respectively), while the stock of finished products indicator improved (by 4 p.p.).
Shortage of skilled labour yet again the largest so far
In July 2018 the current capacity indicator was 84.8%, 1.5 p.p. lower than in April 2018. In 63% of enterprises the capacity utilisation was over 80%.
Among the quarterly indicators the competitive position on the EU and non-EU markets worsened (by 5 and 1 p.p., respectively), while the competitive position on the domestic market improved (by 4 p.p.). The new orders indicator also improved (by 1 p.p.), while the assessment of current production capacity stayed at the same level.
The share of enterprises listing shortage of skilled labour as a factor limiting the production was yet again the highest so far (38% of enterprises). Insufficient domestic and foreign demand continue to be significating limiting factors (as stated by 19% and 18% of enterprises) as well as shortage of labour in general (18% of enterprises). Compared to the previous quarter, 2 p.p. more enterprises experienced no limits in their activity (25% of enterprises).
Retail trade confidence indicator lower than in the previous month
In July 2018 the retail trade confidence indicator was 12 p.p. lower than in June 2018. Compared to July 2017 it decreased by 13 p.p. and was 1 p.p. below the long-term average. The fall of the confidence indicator was influenced by the sales and the expected sales indicators.
The situation and expectation indicators decreased, especially the expected business situation (by 30 p.p.). On the other hand, the business situation, the expected orders and the expected selling prices indicators increased.
The most important factor limiting the enterprises in retail trade was competition in own sector (59%), followed by high costs of labour (40%) and low demand (22%). On the other hand, 12% of enterprises experienced no limits in their activity.
Construction confidence indicator also lower than in the previous month
In July 2018 the construction confidence indicator was 3 p.p. lower than in June 2018 and 5 p.p. higher than in July 2017. It was also 39 p.p. above the long-term average.
The employment expectations indicator and the overall order books indicator that influence the confidence indicator worsened (by 4 and 2 p.p., respectively). Other indicators mostly improved, especially the order books expectations indicator and the price indicator (by 9 and 6 p.p., respectively).
Construction enterprises most frequently listed shortage of skilled labour as a limiting factor in their activities (43% of enterprises), followed by competition in own sector, high cost of labour and high cost of material (36%, 30% and 29% of enterprises, respectively). 12% of enterprises experienced no limits in their activity, 3 p.p. more than in the previous quarter.
Services confidence indicator the same as in the previous month
In July 2018 the services confidence indicator was the same as in June 2018. Compared to July 2017 it was 1 p.p. higher and was 14 p.p. above the long-term average.
The demand and employment indicators decreased, while expectations of those indicators increased. The business situation, the selling prices expectations and the capacity utilisation indicators remained stable.
The most important factor limiting the enterprises in services was insufficient demand (32%), followed by financial constraints (19%), shortage of labour force (18%) and other limitations (9%). On the other hand, 33% of enterprises experienced no limits in their activity.
In July 2018 the manufacturing confidence indicator decreased by 3 percentage points (p.p.) at both the monthly and the annual level. The negative trend continues, as the confidence indicator has yet to increase at the monthly level since January 2018 and the value of the indicator in July 2018 was the lowest in the last two years.
The manufacturing confidence indicator worsened at the monthly level due to the overall order books indicator and the production expectations indicator (they decreased by 7 and 5 p.p., respectively), while the stock of finished products indicator improved (by 4 p.p.).
Shortage of skilled labour yet again the largest so far
In July 2018 the current capacity indicator was 84.8%, 1.5 p.p. lower than in April 2018. In 63% of enterprises the capacity utilisation was over 80%.
Among the quarterly indicators the competitive position on the EU and non-EU markets worsened (by 5 and 1 p.p., respectively), while the competitive position on the domestic market improved (by 4 p.p.). The new orders indicator also improved (by 1 p.p.), while the assessment of current production capacity stayed at the same level.
The share of enterprises listing shortage of skilled labour as a factor limiting the production was yet again the highest so far (38% of enterprises). Insufficient domestic and foreign demand continue to be significating limiting factors (as stated by 19% and 18% of enterprises) as well as shortage of labour in general (18% of enterprises). Compared to the previous quarter, 2 p.p. more enterprises experienced no limits in their activity (25% of enterprises).
Retail trade confidence indicator lower than in the previous month
In July 2018 the retail trade confidence indicator was 12 p.p. lower than in June 2018. Compared to July 2017 it decreased by 13 p.p. and was 1 p.p. below the long-term average. The fall of the confidence indicator was influenced by the sales and the expected sales indicators.
The situation and expectation indicators decreased, especially the expected business situation (by 30 p.p.). On the other hand, the business situation, the expected orders and the expected selling prices indicators increased.
The most important factor limiting the enterprises in retail trade was competition in own sector (59%), followed by high costs of labour (40%) and low demand (22%). On the other hand, 12% of enterprises experienced no limits in their activity.
Construction confidence indicator also lower than in the previous month
In July 2018 the construction confidence indicator was 3 p.p. lower than in June 2018 and 5 p.p. higher than in July 2017. It was also 39 p.p. above the long-term average.
The employment expectations indicator and the overall order books indicator that influence the confidence indicator worsened (by 4 and 2 p.p., respectively). Other indicators mostly improved, especially the order books expectations indicator and the price indicator (by 9 and 6 p.p., respectively).
Construction enterprises most frequently listed shortage of skilled labour as a limiting factor in their activities (43% of enterprises), followed by competition in own sector, high cost of labour and high cost of material (36%, 30% and 29% of enterprises, respectively). 12% of enterprises experienced no limits in their activity, 3 p.p. more than in the previous quarter.
Services confidence indicator the same as in the previous month
In July 2018 the services confidence indicator was the same as in June 2018. Compared to July 2017 it was 1 p.p. higher and was 14 p.p. above the long-term average.
The demand and employment indicators decreased, while expectations of those indicators increased. The business situation, the selling prices expectations and the capacity utilisation indicators remained stable.
The most important factor limiting the enterprises in services was insufficient demand (32%), followed by financial constraints (19%), shortage of labour force (18%) and other limitations (9%). On the other hand, 33% of enterprises experienced no limits in their activity.
Monthly changes in the value of confidence indicators, Slovenia, July 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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