Confidence Belgian entrepreneurs rises to highest level in two years
Belgian business confidence has improved significantly in August, following a decline in July. The confidence among Belgian entrepreneurs is now at its highest level since May 2023, shows the monthly economic barometer by the National Bank.
The Belgian business confidence indicator rose by 1.9 points in August, from -10.8 in July to -8.9 points, according to the National Bank. “Optimism is returning: Belgian entrepreneurs see rays of hope,” stated the National Bank in a commentary on the results of its monthly survey.
Business confidence is rising particularly in the manufacturing sector, as the outlook has improved and inventories have fallen. One possible explanation is that the trade agreement between the European Union and the US has reduced uncertainty. Entrepreneurs in the construction sector also became somewhat more optimistic. They amongst others expect demand to pick up slightly.
In the trade and business services sectors, confidence declined slightly. In trade, for example, “the more negative outlook for demand and employment is only partially offset by better expectations regarding orders from suppliers,” explained the National Bank.
The upward trend in business confidence may be an indication that the growth of the Belgian economy will accelerate in the third quarter. In the second quarter, economic activity increased by 0.2 per cent.
The Belgian business confidence indicator is however still below the long-term average of -5.6 points.
Illustration © BELGA PHOTO ERIC LALMAND