The National Bank of Belgium’s latest Business Echo reports that economic activity continued to grow moderately over the summer, but businesses expect conditions to remain broadly unchanged in early 2026. The impact of U.S. tariffs has so far been contained, although global uncertainty, weak growth drivers and subdued consumer spending are limiting confidence and long-term planning. High labor and energy costs continue to pressure profitability and competitiveness, while intense competition and consumer price sensitivity are keeping sales prices broadly flat. Hiring remains resilient but measured, with technical skills in short supply. Investment is focused mainly on maintenance and efficiency, as firms postpone or scale back expansion projects, though most do not view financing conditions as a constraint. Manufacturing, construction and retail face the strongest pressures. Petrochemicals are operating at historically low capacity utilization, residential construction remains historically weak and retailers face subdued household demand. Pharmaceuticals and defense are more resilient, while existing-home sales are recovering after real estate activity bottomed out. Business services are responding to weaker activity and margin pressure by accelerating digitalization and cost reductions.
National Bank of Belgium reports moderate growth but cautious outlook for early 2026
The National Bank of Belgium reports moderate economic growth but a cautious business outlook for early 2026 as uncertainty and weak demand restrain spending and investment. High labor and energy costs continue to squeeze margins, with manufacturing, construction and retail facing the greatest pressure.