The value of the economic sentiment indicator increased month-on-month in November and remained higher year-on-year. The monthly improvement was driven by all indicators except for the indicator among consumers. After more than a year of improvement, this indicator has declined since September, with consumer expectations for major purchases in particular deteriorating in November. Compared to November last year, only sentiment indicator in construction declined. The economic sentiment indicator has been below its long-term average for almost two years, mainly due to the low value of the confidence indicator in manufacturing.

After a decline in October, annual inflation rose significantly in November (to 1.7%). The expected increase was largely driven by the base effect related the full exemption from the RES and CHP contribution in November last year. In addition, the transition to the peak season for network charges this November led to a 16.8% month-on-month increase in electricity prices. Year-on-year, electricity prices rose by 11.2% (compared to a 22.6% year-on-year decrease in October). Prices in the housing, water, electricity, gas, and other fuels group were slightly higher year-on-year in November (by 0.1%; they were 8.6% lower year-on-year in October). Their contribution to year-on-year inflation increased by 1.1 p.p. Prices of food and non-alcoholic beverages, which increased month-on-month (by 0.8%) and rose by 2.3% year-on-year, and petroleum products also contributed to higher inflation in November. The year-on-year rise in prices of semi-durable goods increased again (to 3%), amid a slightly stronger seasonal price growth in the clothing and footwear group. Prices of durable goods remained around 1% lower year-on-year. Year-on-year growth in services prices declined (to 2.8%; 3.2% in October), which in our estimation was due to the slowdown in price growth in the communication and recreation and culture groups. Year-on-year HICP price growth in Slovenia was 1.6% in November, compared to 2.3% in the euro area. 

In the third quarter, real turnover increased in all trade sectors and was also higher year-on-year. The sales of motor vehicles saw a strong quarter-on-quarter recovery in the third quarter, following a decline in the first half of the year, and rose by 8% year-on-year in the first nine months. Turnover in wholesale trade continued to grow and rose by 2% year-on-year in the first nine months. After stagnating in the first half of the year, turnover in the third quarter increased also in retail sales of food, beverages and tobacco and in retail sales of non-food products, with both sectors recording an increase of 1% year-on-year in the first nine months. Among non-food products, after robust growth in 2021 and 2022, sales of pharmaceuticals and medical products declined for the second year in a row, while sales of household appliances and audio and video equipment increased by a good one tenth year-on-year in the first nine months. According to preliminary data from SURS, turnover in the sales of motor vehicles and in the retail sales of food continued to increase month-on-month in October, while turnover decreased in the retail sales of non-food products.

Total real turnover in market services declined quarter-on-quarter in the third quarter (by 0.3%, seasonally adjusted), though it remained higher year-on-year (by 1.6%). The decline was most pronounced in information and communication, which is attributable to declines in telecommunications and computer services. Turnover also continued to decline in professional and technical activities, although at a significantly slower pace than in the previous quarter. Turnover also declined in administrative and support service activities, with the negative trends in employment and travel agencies continuing. After stagnating in the first half of the year, turnover in accommodation and food service activities rebounded strongly, mainly due to growth in accommodation with an increase in the number of overnight stays by foreign tourists. After a long period of contraction, turnover in transportation and storage also increased. In the first nine months, real turnover decreased year-on-year in transportation and storage and professional and technical activities.

According to survey data, the number of persons in employment remained largely unchanged year-on-year in the third quarter, while the number of unemployed increased, mainly due to increased inflow of young people transitioning from inactivity (education) into the labour market. Among persons in employment, the number of employees in labour relation decreased year-on-year, while the number of employees in other forms of work, in particular the self-employed and unpaid family workers, increased, keeping the total number of persons in employment largely unchanged year-on-year. The number of unemployed, which rose for the second consecutive quarter, increased year-on-year. Compared to the same period last year, the number of young people transitioning from education into the labour market was higher, amid modest growth in economic activity and somewhat lower demand for labour. As a result, the survey unemployment rate in the third quarter (4.4%) was 0.5 p.p. higher year-on-year.