May 2, 2023
According to the flash estimate, seasonally and calendar adjusted gross domestic product (GDP) grew by 0.4% in volume terms in the first quarter of 2023 compared with the previous quarter. In
comparison with a year earlier, the first quarter of 2022, growth came to 1.3%. An initial estimate shows that, in comparison to the previous quarter, value added was down by 0.6% in industry. The services sector continued to report positive growth of 0.7%. Value added rose by 0.4% in the construction industry.
Business confidence remains virtually stable in April
After rising sharply last month, the business confidence indicator held more or less steady this month, despite an uptick in trade and business-related services.
In the manufacturing industry, the indicator fell.
In the manufacturing industry, business sentiment waned after four consecutive months of improvement. The components of the synthetic indicator moved in opposite directions: the assessment of orders books and employment expectations deteriorated while stock levels were assessed more favourably and the demand outlook recovered slightly.
The business climate in the building industry remained virtually unchanged. Equipment use was less intensive, and the trend in orders worsened. On the other hand, assessment of the latter was more positive and demand expectations strengthened.
Last month, the indicator rose in the business-related services sector, and a further increase this month, while less marked, confirms the restoration of confidence. Both the assessment of activity levels and market demand expectations improved. However, business leaders maintained their assessment of future activity levels.
The strongest increase in the indicator was noted in trade. This month’s improvement was widespread across all surveyed sectors. Employment expectations and intentions of placing orders were revised upwards while demand expectations were slightly downgraded.
The overall smoothed synthetic curve, which reflects the underlying economic trend, continues to point upwards. Finally, the seasonally adjusted capacity utilisation rate in the manufacturing industry reached 77.7% in April, compared to 75.3% in January, reflecting the cyclical upturn observed in this sector during the first quarter.
Source: National Bank of Belgium
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