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Belgian August Business Confidence Improves More Than Economists Forecast
Belgian business confidence improved more than economists forecast in August, easing concerns that the European economy may be headed back into a recession.
The confidence index for Belgium, the sixth-largest economy in the euro region, rose to minus 5.1 from minus 6.5 in July, the National Bank of Belgium in Brussels said today in an e- mailed statement. That’s the highest reading since May and is above the minus 6 projected by economists, according to the median of 11 estimates in a Bloomberg survey.
Economic data across Europe is showing a mixed picture as the region struggles to maintain momentum after expanding in the second quarter at the fastest pace in four years. While European consumer sentiment improved this month and industrial orders rose more than forecast in June, German August business confidence is projected to deteriorate.
The euro was little changed against the dollar after the Belgian data, trading at $1.2606 at 2:05 p.m. in London, down 0.4 percent on the day.
In Germany, Europe’s largest economy and one of Belgium’s biggest trading partners, business sentiment is forecast to decline in August for the first time in six months. The Ifo institute’s business climate index, based on a survey of 7,000 executives, probably decreased to 105.7 from 106.2, according to the median of 36 estimates in a Bloomberg survey.
The Munich-based Ifo is scheduled to publish the indicator tomorrow at 10 a.m.
Building Industry
In Belgium, “business confidence has increased in each of the four business sectors surveyed,” the central bank said in today’s report. “The improvement was sharpest in the building industry and was mainly driven by a more favorable assessment of orders.”
Belgium faces political uncertainty until a new government is formed following early elections in June. Elio Di Rupo, president of the French-speaking Socialists, is leading negotiations to work out a basis for the start of coalition talks. Three years ago, government formation took a record nine months.
To contact the reporter on this story: Jurjen van de Pol in Amsterdam at jvandepol@bloomberg.net.
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