Business tendency, Slovenia, November 2021

Confidence in manufacturing and retail trade improved, in construction and services worsened

In November 2021, the confidence indicators higher in manufacturing and retail trade and lower in construction and services. In manufacturing and services, they plan to invest the most in the replacement of worn-out buildings and equipment, which is expected to be stimulated by technical factors.

  • 24 November 2021 at 10:30
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  • final data
Manufacturing confidence indicator higher

The confidence indicator in manufacturing was higher in all three comparisons: compared to October 2021 by 2 percentage points (p.p.), compared to November 2020 by 7 p.p. and compared to the long-term average by 5 p.p.

Most situation and expectation indicators improved, except the indicators of production and assured production, which deteriorated (by 3 and 0.1 p.p., respectively) and the stock of finished products indicator, which remained the same.

Investment in manufacturing

In November 2021, 26% of enterprises report that investments increased this year compared to the previous year, 20% that they decreased, while 34% of enterprises report that investments will increase next year and 12% of enterprises that they will decrease.

Regarding investments, directors report that this year they invested the most in the replacement of worn-out buildings or equipment (76% of enterprises), followed by capacity expansion (33% of enterprises), process rationalization (25% of enterprises) and other (10% of enterprises). For 2022, similarly to this year, they plan to invest the most in the replacement of worn-out buildings or equipment (74% of enterprises, 2 p.p. less than this year), followed by capacity expansion (38%, 5 p.p. more), process rationalization (27%, 8 p.p. more), and other (9%, 2 p.p. less).

56% of enterprises believe that this year's investments were influenced by technical factors, 45% that investment is driven by demand, 16% by financial conditions and 11% by other factors. For next year, investments will also be encouraged the most by technical factors, which was reported by 56% of enterprises, followed by demand (50% of enterprises), financial conditions (22% of enterprises) and other factors (12% of enterprises).

Retail trade confidence indicator higher

After a few months of decline, in November 2021 the retail trade confidence indicator grew by 7 p.p. The confidence indicator in retail trade was 16 p.p. higher than in November 2020 and 5 p.p. below long-term average.

Most indicators improved, except two, the expected employment and the expected sales prices. After a large jump in the expected sales prices indicator in October, a smaller drop in the indicator was observed (by 2 p.p.). The most significant improvement was recorded in the volume of stocks indicator, by 13 p.p.

Construction confidence indicator lower

In November 2021, the construction confidence indicator was 1 p.p. lower than in October 2021. Compared to November 2020, it was 25 p.p. higher and it was 33 p.p. higher than the long-term average.

The decrease in the confidence indicator was mainly due to the overall order books indicator, which decreased by 3 p.p. The expected employment indicator did not affect the change in value this time, as it remained the same as in the previous month. The expected price indicator recorded a significant increase of 12 p.p.

Services confidence indicator a bit lower

The confidence indicator in services was 1 p.p. lower in November 2021 than in October 2021, 5 p.p. above the long-term average and 33 p.p. higher than in November 2020.

Most of the indicators deteriorated, except the indicators of the expected sales price and the business situation, which show an improvement. Thus, the upward trend in these two indicators continues since April 2021 for the expected sales price indicator and since the beginning of the year for the business situation indicator.

Investment in services

In Novmber 2021, 26% of enterprises report that investments increased this year compared to the previous year, 20% that they decreased, while 27% of enterprises report that investments will increase next year and 11% of enterprises that they will decrease.

Regarding investments, directors report that this year they invested the most in the replacement of worn-out buildings or equipment (81% of enterprises), followed by capacity expansion (27% of enterprises), process rationalization (13% of enterprises) and other (8% of enterprises). For 2022, similarly to this year, they plan to invest the most in the replacement of worn-out buildings or equipment (82% of enterprises), and slightly more than this year in capacity expansion (29%, 2 p.p. more than this year), process rationalization (21%, 8 p.p. more), and other (10%, 2 p.p. more).

58% of enterprises believe that this year's investments were influenced by technical factors. 27% that investment is driven by demand, 21% by financial conditions and 19% by other factors. For next year, investments will also be encouraged the most by technical factors, which was reported by 54% of enterprises, followed by demand (34% of enterprises), financial conditions (23% of enterprises) and other factors (20% of enterprises).

Tables with the latest data are available in the SiStat Database.

Monthly changes in the value of confidence indicators, Slovenia, November 2021
Monthly changes in the value of confidence indicators, Slovenia, November 2021
Source: SURS
METHODOLOGICAL NOTE
Data published in this release differ from data published so far. According to the instructions of the European Commission, the part of the Business Tendency questionnaire related to investments in manufacturing has been changed. The entire time series was recalculated and published to ensure comparability of data over the years.

We are publishing data on investments in service activities for the first time. The survey is conducted twice a year: in April (spring) and November (autumn). The first autumn data are published in the Sistat database.

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.
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