Belgium Business Pessimism Deepens in December

Belgium's business confidence indicator fell 4.9 points to -13.7 in February 2025, down from -8.8 in the prior month and missing forecasts of -7.5. The trade sector recorded the sharpest deterioration, with its index plunging to -17.9 from -5.6, as expectations and order forecasts to suppliers slumped sharply. In the manufacturing industry, confidence weakened to -17.1 from -11.0, with all sub-components declining amid a significant deterioration in assessments of total order books. Business-related services posted a third consecutive monthly drop, with the index slipping to -4.3 from -2.7. The building industry confidence was nearly unchanged at -7.1 from -6.8.

The business confidence indicator in Belgium rose by 3.8 points to -11.0 in January 2026, rebounding from a seven-month low of -11.9 in December 2025 and exceeding the market consensus of -10.2. Confidence strengthened across key cyclical sectors. In the manufacturing industry (-11.0 vs -14.8 in December 2025), the rebound was driven by more optimistic assessments of total order books and, to a lesser extent, improved employment expectations. The building industry (-6.8 vs -8.3) recovered after monthly declines since October 2025, led by stronger demand expectations. Trade (-5.6 vs -13.8) saw a sharp improvement in sentiment as demand and supplier orders picked up, although firms plan to hire fewer staff in the coming three months. By contrast, business-related services (-2.7 vs -2.5) weakened for the second consecutive month, reflecting lower expectations for market demand and activity, partially offset by more positive assessments of current activity.

The business confidence indicator in Belgium fell 3.7 points to -11.9 in December 2025, marking the lowest reading since May and following -8.2 in November, well below the market consensus of -7.8. Confidence weakened across most sectors, with manufacturing industry (-14.8 vs -9.9) falling amid pessimistic order books, low stock levels, and weaker employment and demand expectations. Business-related services (-2.5 vs -2.2) remained largely stable, as negative assessments of current activity were offset by more optimistic expectations for future activity and market demand. Building industry (-8.3 vs -6.5) declined on reduced equipment use and lower order volumes. Trade (-13.8 vs -8.9) fell for the second consecutive month, driven by expectations of falling demand and reduced orders, though firms still plan to hire over the next three months.