Belgium Business Confidence Weakens More Than Expected

(RTTNews) - Belgium's business confidence deteriorated more-than-expected in July, after improving in the previous month, mainly due to revision in demand forecasts, survey data from the National Bank of Belgium showed Friday.

The business confidence index dropped to -7.5 from June's -6.2. Economists had expected a modest fall in the measure to -6.5.

Morale weakened sharply in the manufacturing sector with the relevant index falling to -9.8 from -8.1. Manufacturers expect marked contraction in demand in the next three months and viewed their stock levels as more unfavorable.

The production capacity utilization rate in the manufacturing sector was 79 percent in July versus 79.1 percent in April.

The confidence index in the trade sector plunged to -13.2 from -4.3. Opinion indicators, especially demand forecasts and, to a lesser extent, the outlook for orders placed with suppliers and employment expectations deteriorated sharply, the survey said.

Construction sector sentiment also deteriorated steeply and the index tumbled to -13.9 from -10.5. Firms expect the falling trend in orders to continue in the next three months.

Sentiment improved in strongly in the business services sector and the corresponding measure climbed to 10.5 from 5.7. Demand forecasts were revised up in the sector.