Belgian Bussiness sentiment deteriorates

Belgian business confidence survey confirmed that sentiment continued to deteriorate in October, similar to the message of the EMU PMI’s released on Monday. The headline index fell to -10.4 from -9.4 in September and compares to a consensus estimate of -10. Sentiment peaked in March 2011 (+6.2) and slid since uninterrupted lower. The index is well below its 10-year average (-5.17), but still somewhat above levels that marked the shallow recession in the early years of the previous decade. Looking to the details, there was apparently a silver lining in an otherwise bleak report. Indeed, manufacturing sentiment improved slightly, contrary to the other sectors. However, closer analysis showed that the underlying picture, also in manufacturing deteriorated.