Production volume in manufacturing maintained the level achieved in the first quarter of the year. At the beginning of the last quarter, production increased further in high-technology industries. In the last few months it has also risen somewhat in medium-high technology ones. In the first ten months, production in high-technology industries was up 11.4% year on year, while in most other industries it was similar to that last year or only slightly higher. According to the Business Tendency Survey, higher growth is impeded particularly by insufficient demand. Year-on-year growth in turnover from sales on foreign markets has slowed in the last two years (from around 10% in 2016 and 2017 to around 3% this year). Significantly more modest growth is also recorded on the domestic market, where most activities otherwise generate a smaller share of turnover than abroad.

The moderation of growth in Slovenia’s main trading partners in the euro area is reflected in lower growth in Slovenia’s external trade. The slowdown of growth in foreign demand in the euro area has already been reflected in less favourable export expectations and exports developments in some main manufactured goods for several months (particularly goods for intermediate consumption). Exports to Germany have slowed in particular, being somewhat lower year on year in the third quarter. This had to do with lower exports of machinery and transport equipment (particularly vehicles and vehicle-related products, which account for almost a third of all exports to Germany). Slower growth was also recorded for imports of intermediate goods, which is related to the moderation of growth in manufacturing. Total growth in trade in goods otherwise remains high primarily on account of the strong distribution activity in medicinal and pharmaceutical products (re-exports to Switzerland).

The value of construction output increased in October after several months of decline, but was lower than at the end of last and the beginning of this year. Following strong growth early in the year, which was also due to favourable weather conditions, the value of construction output fell in the middle of the year. The decline was the most pronounced in the construction of non-residential buildings, which is related to deteriorated expectations of the business sector and its investment activity. The slowdown in civil-engineering works was more moderate, while activity in the construction of residential buildings increased further, amid significant monthly fluctuations. The indicators of the stock of contracts and new contracts in construction, which fell towards the end of last year, have strengthened again this year and are already higher than last year.