Business confidence fell to 7.6 in August from 10.1 in July, data from the National Bank of Belgium showed Wednesday. July’s reading is the highest since the indicator in its current composition was introduced in 1980. Business sentiment in Belgium declined in August after eight consecutive months of gains that placed the indicator at record high levels. Business climate declined in all sectors, with manufacturing and construction registering the steepest falls. “Despite a slight dip concerning all branches of activity, business confidence remains high,” the report said. Economists polled by FactSet expected the indicator to come in at 9.6.
In manufacturing, respondents expressed a less favorable opinion about stock levels, likely due to widespread supply strains, and were also more reserved about the outlook for demand, the National Bank said. The indicator for the sector fell to 7.2 points in August from 10.0 in July. For services providers, the index fell to 16.4 from 18.1 the previous month. Companies views on their current situation and market demand worsened, but the outlook on future activity brightened. The index for the construction sector fell to 3.7 from 5.8 in July, with respondents reporting a reduction in order books and in equipment used. In the trade sector, the decline to minus 1.1 from minus 0.2 stems from deteriorating demand forecasts, the report said.