Business tendency, Slovenia, November 2020
The confidence indicator down in all economic activities
The confidence indicator declined in services, retail trade, construction and manufacturing.
Manufacturing confidence indicator lower
In November 2020, the manufacturing confidence indicator was 2 percentage points (p.p.) lower than in October 2020. Compared to November 2019, it was higher by 2 p. p., and by 1 p.p. below the long-term average.
All values of situation indicators were higher, while all values of expectation indicators decreased. The expected demand indicator decreased the most, by 14 p.p.
Investment in 2020 up by 2% over 2019
92% of manufacturing enterprises invested in 2020. In these enterprises, investment increased on average by 2% compared to 2019.
In 2020, enterprises invested in the replacement of worn-out equipment, in the extension of production capacity and to streamline production (each 27% of enterprises).
In 2021, most enterprises plan on investing to streamline production (29% of enterprises), followed by investment in the replacement of worn-out equipment (27%), investment in the extension of production capacity (27%) and investment in other investment objectives (17%). Demand, financial resources or expected profits, and technical factors were most stimulating to investment in 2020. The same factors are expected to be stimulating in 2021 as well.
In November 2020, the present business situation indicator was 28 p.p. higher than in April 2020, while the indicator of expected business situation in the next six months was 37 p.p. higher.
Retail trade confidence indicator lower
In November 2020, the retail trade confidence indicator was 12 p.p. lower than in October 2020, 26 p.p. below the long-term average and 17 p.p. lower than in November 2019.
The situation indicators detoriorated, except the business situation indicator, which increased. The expectation indicators increased, except two of them: the expected business situation and the expected selling prices.
Construction confidence indicator lower
In November 2020, the construction confidence indicator was 5 p.p. lower than in October 2020 and 12 p.p. lower than in November 2019. It was, however, 7 p.p. above the long-term average.
In construction, all indicators decreased, except the employment indicator and the expected order books indicator, which slightly increased. The expected employment indicator did not change and thus had no impact on the decrease in the construction confidence indicator.
Services confidence indicator lower
In November 2020, the services confidence indicator was 14 p.p. lower than in October 2020. Compared to November 2019, it was 36 p.p. lower and 29 p.p. below the long-term average. The fall of the indicator continued from the previous month.
In services, all situation and expectation indicators deteriorated. The expected demand indicator decreased the most, by 22 p.p.