Belgium: Consumer confidence and business sentiment improve markedly in January

Consumer confidence jumped in January to 4.0 points from 2.0 points in December. The improved reading was driven solely by a markedly more optimistic outlook on the general economic situation over the next twelve months. This more than offset a downturn in views over unemployment and household savings for the same period. Meanwhile, consumers’ perceptions of their personal financial situations remained stable at the critical zero-point threshold that separates optimism from pessimism among consumers.

Business confidence shot up in January, rising to 1.8 points from 0.1 points in December. January’s result was underpinned by a broad-based improvement in sentiment. Sentiment regarding the business industry swung into positive territory thanks to upbeat demand expectations and a more positive assessment of total order books. The outlook on demand also brightened for the business-related services sector and the trade sector, improving overall sentiment in these industries. Meanwhile, the upturn in sentiment in the manufacturing industry was brought about by a more favorable appraisal of total order books.

FocusEconomics panelists expect private consumption to expand 1.5% in 2018, which is up 0.1 percentage points from last month’s estimate. They project growth of 1.4% in 2019. Panelists expect fixed investment to expand 2.9% in 2018, which is also up 0.1 percentage points from last month’s projection. For 2019, the panel sees fixed investment growing 2.3%.