Business tendency, Slovenia, November 2018

Manufacturing confidence indicator lower than in the previous month

In November 2018, the manufacturing confidence indicator decreased by 3 percentage points (p.p.) compared to the previous month and decreased by 7 p.p. over November 2017. It remained above the long-term average (by 7 p.p.).

The confidence indicator worsened primarily due to the decrease in the production expectations indicator (by 14 p.p.). The stocks of the finished products indicator remained unchanged, while the overall order books indicator improved (by 6 p.p.).

Investment in 2018 increased by 17% over 2017

97% of manufacturing enterprises invested in 2018. In these enterprises, investment increased on average by 17% compared to 2017.

In 2018, most enterprises invested in the replacement of worn-out equipment (33% of enterprises), and then in investment in the extension of production capacity and investment designed to streamline production (29% and 24% of enterprises, respectively).
In 2019, most enterprises planned on investing in the replacement of old equipment (32% of enterprises), followed by the extension of production capacity (29%), investment designed to streamline production (26%) and investment in other investment objectives (13%). Demand, financial resources or expected profits, and technical factors were most stimulating to investment in 2018. The same factors are expected to be stimulating in 2019 as well.

In November 2018, the present business situation indicator was 1 p.p. lower than in April 2018, while the indicator expected business situation in the next six months was 13 p.p. lower.

Retail trade confidence indicator lower than in the previous month

In November 2018 the retail trade confidence indicator was 9 p.p. lower than in October 2018. Compared to November 2017, it decreased by 21 p.p. and was also 2 p.p. below the long-term average.

The decrease of the retail trade indicator was influenced predominantly by the sales indicator. The expected sales indicator and the expected orders indicator also worsened, while the expected selling prices indicator, the expected business situation indicator, the expected employment indicator and the volume of stocks indicator improved.

Once again, the construction confidence indicator higher than in the previous month

In November 2018 the construction confidence indicator was 5 p.p. higher than in October 2018, 10 p.p. higher than in November 2017 and also 40 p.p. above the long-term average. The construction confidence indicator was higher for the second month in succession.

The construction confidence indicator increased at the monthly level due to the employment expectations indicator (by 8 p.p.).

Services confidence indicator the same as in the previous month

In November 2018, the services confidence indicator was the same as in October 2018. Compared to November 2017 it was 6 p.p. lower, yet 13 p.p. above the long-term average.

The expected sales prices indicator, the expected employment indicator and the demand indicator decreased, while the employment indicator and the business situation indicator increased. The expected demand indicator remained stable.