Belgian business confidence sinks in January

Belgian business confidence, a bellwether for the euro zone, unexpectedly fell to its lowest reading since July 2013, as managers in all business sectors became more pessimistic about the outlook for demand. The business confidence index fell to -8.8 in January from -6.9 in December. That was two full points below the lowest reading in a Reuters poll of seven economists that produced a consensus forecast for an improvement to -6.2.
Belgium is seen as one of the most open economies in the euro zone and has in the past served as a reasonable guide to the health of its peers. The data comes before the closely watched German Ifo business climate index on Monday, which is currently expected to improve. The fall in confidence was most severe in the retail and trade sectors, with business chiefs forecasting a drop in demand. Sentiment was also poor among managers in the construction sector, as they became more downbeat about their order book and demand expectations.