In October, the value of the sentiment indicator fell compared to September, although it remained higher than in the same month last year. The renewed monthly decline in economic sentiment was driven by all confidence indicators except construction, which had no impact. Year-on-year, sentiment indicators improved among consumers, in manufacturing and in services, while they deteriorated in construction and retail trade. Consequently, the economic sentiment indicator has been below its long-term average for around two years. Of all the confidence indicators, only indicators in services and construction were above their long-term averages.

With Slovenian industrial producer prices remaining stable on a month-on-month basis, the year-on-year decline eased slightly in September, reaching -0.9%. This decrease was largely driven by an 8.4% drop in energy prices and a 1.4% decline in intermediate goods prices, although the latter’s price drop is gradually easing (prices were still 4.7% lower year-on-year at the beginning of the year). For the first time since June 2020, prices in the capital goods group were also lower year-on-year (-0.1%). Meanwhile, growth in consumer goods prices remained stable (1.2%). Domestic prices continued to decline year-on-year (-2.1%), with decreases observed in all groups except consumer goods. In September, prices on foreign markets were higher year-on-year (by 0.2%) for the first time since August 2023. This growth was mainly driven by a 2% increase in prices on non-euro-area markets, while prices in euro-area markets declined by 0.4% year-on-year.

In August, the year-on-year real growth of the average wage remained relatively high (4.9%). Growth in the public sector (2.7%) was consistent with the previous two months and higher than on average in the first five months, which is attributed to adjustments in the pay scale grades implemented in June, in accordance with the agreement on the partial adjustment of wages to inflation. Year-on-year wage growth in the private sector (5.9%) was higher in real terms than on average in the first seven months. This was primarily due to lower year-on-year inflation amid continued strong upward pressure on (nominal) wage growth stemming from a shortage of labour. In the first eight months, overall average gross wage increased by 6.5% year-on-year in nominal terms – by 7.7% in the public sector and by 4.3% in the private sector. This increase is lower than that observed in the same period last year.