Business tendency, Slovenia, October 2019

Confidence in construction and retail trade lower

In October 2019 the confidence indicator in construction and retail trade decreased, while in manufacturing and services it remained the same as in September 2019.

  • 25 October 2019 at 10:30
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  • final data

Manufacturing confidence indicator the same as in the previous month

In October 2019 the manufacturing confidence indicator stayed the same compared to the previous month and decreased by 11 percentage points (p.p.) over October 2018. It was 1 p.p. below the long-term average.

The production expectation indicator increased (by 5 p.p.), while the overall order books and the stocks of finished products indicators deteriorated (each by 3 p.p.).

Shortage of skilled labour, yet again the largest so far
In October 2019 the current capacity indicator was 83.3%, 0.4 p.p. lower than in July 2019. In 57% of enterprises the capacity utilisation was over 80%.

Among the quarterly indicators, the competitive position on the domestic and EU markets decreased (each by 2 p.p.) and also on the non-EU markets (by 1 p.p.), and also the new orders indicator decreased as well (by 1 p.p.). The assessment of current production capacity improved (by 11 p.p.).

The share of enterprises listing shortage of skilled labour as a factor limiting the production was yet again the highest so far (in 34% of enterprises). Insufficient foreign and domestic demand both continued to be significatingly limiting factors (in 30% and 28% of enterprises, respectively). Compared to the previous quarter, the same enterprises experienced no limits in their activity (25% of enterprises).

Retail trade confidence indicator a bit lower than in the previous month

In October 2019 the retail trade confidence indicator was 1 p.p. lower than in September 2019. Compared to October 2018 it was the same and was 7 p.p. above the long-term average.

Among situation and expectation indicators there was an increase in the expected selling prices indicator, the business situation indicator and the volume of stocks indicator, while the other indicators decreased. The indicator of expected employment remained stable.

The most important factor limiting the enterprises in retail trade was competition in own sector (56%), followed by high costs of labour (35%) and low demand (24%). On the other hand, 12% of enterprises experienced no limits in their activity.

Construction confidence indicator lower at monthly and annual level

In October 2019 the construction confidence indicator was 4 p.p. lower than in September 2019, 14 p.p. lower than in October 2018 and 18 p.p. above the long-term average.

The confidence indicator at the monthly level decreased due to the overall order books indicator (by 7 p.p.), while the employment expectations indicator stayed the same.

Construction enterprises most frequently listed shortage of skilled labour as a limiting factor in their activities (45% of enterprises), followed by competition in own sector and high cost of labour (34% and 31% of enterprises, respectively). 16% of enterprises experienced no limits in their activity, 2 p.p. more than in the previous quarter.

Services confidence indicator the same as in the previous month

In October 2019 the services confidence indicator was the same as in September 2019. Compared to October 2018, it was 5 p.p. lower and 9 p.p. above the long-term average.

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

The most important factor limiting the enterprises in services was insufficient demand (in 32% of enterprises), followed by shortage of labour force (in 20% of enterprises), financial constraints (in 19% of enterprises) and other limitations (in 9% of enterprises). On the other hand, 31% of enterprises experienced no limits in their activity.

Monthly changes in the value of confidence indicators, Slovenia, October 2019
Monthly changes in the value of confidence indicators, Slovenia, October 2019
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.