October 4, 2023

Business confidence picks up slightly in September in Belgium

The slight upturn masks contrasting sector-specific developments: a clear improvement in business-related services, near stabilisation in the manufacturing industry, a decline in trade,
and an even more pronounced dip in the building industry.

The sharp fall in the indicator in the business-related services sector witnessed since the summer has been halted, giving way to a clear upswing. All underlying components have improved, particularly activity expectations, which have been revised significantly upwards following last month’s downturn.

For the second month running, business sentiment in the manufacturing industry held virtually stable due to diverging developments across the various components. This month, business leaders were more optimistic about employment expectations but more cautious about demand expectations and expressed more concern about current levels of both stock and order books.

In the trade sector, the deterioration in demand expectations offset last month’s improvement. Intentions of placing orders with suppliers also fell, while employment expectations remained virtually unchanged. All in all, the indicator contracted. Lastly, the most marked loss of confidence this month was seen in the building industry, which had already posted a decline in August. All components contributed to this downward trend, with the exception of demand expectations, which held up despite the prevailing gloom.

Influenced by the negative results of recent months, the smoothed synthetic curve, which reflects the underlying economic trend, continues to fall.

Source: National Bank of Belgium
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