October 7, 2022
The loss of confidence was particularly abrupt in the retail sector. Demand forecasts collapsed, after having recovered in August, and those for orders placed with suppliers fell again. The ownward revision of the employment outlook was somewhat less marked. Trade in motor vehicles is an exception as the confidence indicator improved in this sector. Demand forecasts in the manufacturing industry were considerably weaker as well. The other underlying components of the indicator also receded in this sector, in particular the assessment of order books, which revealed a significant decline for the second consecutive month, and the employment outlook.
Economic climate in the business-related services sector is also suffering from much more unfavourable forecasts concerning both firms’ own activity and general market demand. On the other hand, business leaders expressed more positive views on recent trends in their activity.
In the building industry, the indicator remained more or less stable, with demand forecasts even improving. On the other hand, business leaders were less optimistic about the level of their order books, whose recent progression they assessed more negatively. They also reported less intensive use of equipment. The overall smoothed synthetic curve, which reflects the underlying cyclical trend, continues to decline
Source: National Bank of Belgium
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