Business tendency, Slovenia, October 2021
Confidence in construction and services improved, in manufacturing and retail trade worsened
In October 2021, the confidence indicators were higher in construction and services and lower in manufacturing and retail trade. In individual activities the main limiting factors were shortage of skilled labour, competition in the sector, a high cost of material and the coronavirus.
Manufacturing confidence indicator lower than in September 2021
The confidence indicator in manufacturing was 5 percentage points (p.p.) lower than in September 2021, 1 p.p. higher than in October 2020 and 2 p.p. above the long-term average.
Most indicators deteriorated, most notably overall order books (by 16 p.p.) and export order books (by 13 p.p.). On the other hand, the expected export order books indicator increased by 7 p.p. and production expectations by 4 p.p.
Shortage of skilled labour and shortage of raw materials the main limiting factors of production
In October 2021, the current capacity indicator was 85%, 1.2 p.p. lower than in July 2021. All quarterly indicators decreased, except the assessment of current production capacities, which increased by 3 p.p. The indicators of the assessment of the competitive position deteriorated, namely on EU markets by 5 p.p., on the domestic market by 3 p.p. and on non-EU markets by 1 p.p. Shortage of skilled labour was the main factor limiting production (stated by 35% of enterprises or 14 p.p. more than in the same quarter last year), followed by shortage of raw materials (34% or 30 p.p. more) and uncertain economic conditions (28% or 8 p.p. fewer).
Retail trade confidence indicator lower
The confidence indicator in retail trade has been declining since July 2021. In October 2021, it was 8 p.p. lower than in September 2021. Compared to October 2020 and the long-term average, it was lower by 2 p.p. and 12 p.p., respectively.
The confidence indicator decreased mainly due to the deterioration of the stock volume indicator by 24 p.p., which also deteriorated the most. On the other hand, the indicators of expected sales prices and expected employment improved the most (by 51 and 24 p.p., respectively).
In October 2021, the main limiting factors in retail trade were competition in the sector (stated by 45% of enterprises or 5 p.p. fewer than in the same quarter last year), high labour costs (34% or 4 p.p. more), the coronavirus (27% or 1 p.p. fewer) and low demand (20% or 12 p.p. fewer).
Construction confidence indicator higher
In October 2021, the confidence indicator in construction was 1 p.p. higher than in September 2021. Compared to October 2020, the indicator was 23 p.p. higher and it was 34 p.p. higher than the long-term average.
The increase in the construction confidence indicator was mainly due to employment expectations, which increased by 3 p.p., while the overall order books indicator had no impact as it was the same as in the previous month.
Most construction enterprises stated high cost of material as the main limiting factor in their activities in October 2021 (59% or 38 p.p. more than in the same quarter last year). This was followed by shortage of skilled labour (49% or 12 p.p. more), and high cost of labour (34% or 4 p.p. more).
Services confidence indicator higher
In October 2021, the confidence indicator in services was 2 p.p. higher than in September 2021 and 6 p.p. above the long-term average. Compared to October 2020 it was up by 20 p.p.
The values of the situation and expectations indicators increased, except for the demand and capacity utilization indicators, which remained the same as in the previous month.
In October 2021, the main limiting factors were the coronavirus and insufficient demand (each 29% of enterprises, each 6 p.p. fewer than in the same quarter last year). Immediately behind them was the shortage of labour force (24% or 14 p.p. more). However, 25% of enterprises stated that there were no limits in their activity (2 p.p. fewer).
Tables with the latest data are available in the SiStat Database.
The confidence indicator in manufacturing was 5 percentage points (p.p.) lower than in September 2021, 1 p.p. higher than in October 2020 and 2 p.p. above the long-term average.
Most indicators deteriorated, most notably overall order books (by 16 p.p.) and export order books (by 13 p.p.). On the other hand, the expected export order books indicator increased by 7 p.p. and production expectations by 4 p.p.
Shortage of skilled labour and shortage of raw materials the main limiting factors of production
In October 2021, the current capacity indicator was 85%, 1.2 p.p. lower than in July 2021. All quarterly indicators decreased, except the assessment of current production capacities, which increased by 3 p.p. The indicators of the assessment of the competitive position deteriorated, namely on EU markets by 5 p.p., on the domestic market by 3 p.p. and on non-EU markets by 1 p.p. Shortage of skilled labour was the main factor limiting production (stated by 35% of enterprises or 14 p.p. more than in the same quarter last year), followed by shortage of raw materials (34% or 30 p.p. more) and uncertain economic conditions (28% or 8 p.p. fewer).
Retail trade confidence indicator lower
The confidence indicator in retail trade has been declining since July 2021. In October 2021, it was 8 p.p. lower than in September 2021. Compared to October 2020 and the long-term average, it was lower by 2 p.p. and 12 p.p., respectively.
The confidence indicator decreased mainly due to the deterioration of the stock volume indicator by 24 p.p., which also deteriorated the most. On the other hand, the indicators of expected sales prices and expected employment improved the most (by 51 and 24 p.p., respectively).
In October 2021, the main limiting factors in retail trade were competition in the sector (stated by 45% of enterprises or 5 p.p. fewer than in the same quarter last year), high labour costs (34% or 4 p.p. more), the coronavirus (27% or 1 p.p. fewer) and low demand (20% or 12 p.p. fewer).
Construction confidence indicator higher
In October 2021, the confidence indicator in construction was 1 p.p. higher than in September 2021. Compared to October 2020, the indicator was 23 p.p. higher and it was 34 p.p. higher than the long-term average.
The increase in the construction confidence indicator was mainly due to employment expectations, which increased by 3 p.p., while the overall order books indicator had no impact as it was the same as in the previous month.
Most construction enterprises stated high cost of material as the main limiting factor in their activities in October 2021 (59% or 38 p.p. more than in the same quarter last year). This was followed by shortage of skilled labour (49% or 12 p.p. more), and high cost of labour (34% or 4 p.p. more).
Services confidence indicator higher
In October 2021, the confidence indicator in services was 2 p.p. higher than in September 2021 and 6 p.p. above the long-term average. Compared to October 2020 it was up by 20 p.p.
The values of the situation and expectations indicators increased, except for the demand and capacity utilization indicators, which remained the same as in the previous month.
In October 2021, the main limiting factors were the coronavirus and insufficient demand (each 29% of enterprises, each 6 p.p. fewer than in the same quarter last year). Immediately behind them was the shortage of labour force (24% or 14 p.p. more). However, 25% of enterprises stated that there were no limits in their activity (2 p.p. fewer).
Tables with the latest data are available in the SiStat Database.
Monthly changes in the value of confidence indicators, Slovenia, October 2021
Source: SURS
METHODOLOGICAL NOTE
Data are seasonally adjusted.
The business surveys are co-financed by the European Commission. However, the European Commission accepts no responsibility or liability whatsoever with regard to the material published in this document.
The business surveys are co-financed by the European Commission. However, the European Commission accepts no responsibility or liability whatsoever with regard to the material published in this document.
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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