By Maria Martinez

Business confidence in Belgium fell sharply in September, declining for the fifth consecutive month amid higher energy prices and weaker demand.

The business confidence index fell to minus 11.8 in September from minus 5.8 in August, data from the National Bank of Belgium showed Monday. Economists polled by The Wall Street Journal expected the indicator to come in at minus 8.8.

The acute deterioration in the business climate is affecting all sectors of activity covered by the survey, with the exception of the building industry, with the indicator remaining virtually stable, the Bank of Belgium said.

The loss of confidence was particularly abrupt in the retail sector, with its indicator falling to minus 24.1 in September from minus 11.9 in August. Demand forecasts collapsed and those for orders placed with suppliers fell again.

Demand forecasts in the manufacturing industry were considerably weaker as well. The indicator for this sector declined to minus 13.9 from minus 7.2 in the previous month.

The economic climate in the services sector is also suffering from much more unfavorable forecasts concerning both firms' own activity and general market demand. The indicator for the sector deteriorated to minus 4.5 in September from 2.1 in August.

In the building industry, the indicator remained more or less stable, falling to minus 6.0 from minus 5.6, with demand forecasts even improving. However, business leaders were less optimistic about the level of their order books.

Write to Maria Martinez at maria.martinez@wsj.com

(END) Dow Jones Newswires

September 26, 2022 09:14 ET (13:14 GMT)