Confidence among 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 entrepreneurs is now at its highest level since May 2023, according to the monthly economic barometer by the National Bank.
The Belgian business confidence indicator rose by 1.9 points in August, from -10.8 points in July to -8.9, according to the National Bank. “Optimism is returning: Belgian entrepreneurs see rays of hope,” the bank said in a statement.
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 and 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” the National Bank said.
The upward trend in confidence may be an indication that growth of the Belgian economy will accelerate in the third quarter. In the second quarter, economic activity increased by 0.2 per cent.
The confidence indicator is still below the long-term average of -5.6 points.
Illustration © BELGA PHOTO ERIC LALMAND