The National Bank of Belgium's business barometer dropped sharply in August, offsetting the improvement of the business climate recorded in the previous two months.

The business climate declined in all branches of activity.

In the manufacturing industry business pessimism showed in all components, but especially as to the assessment of overall order books.

After three consecutive improvements, business climate deteriorated in the business-related services. The recent development of activity was held to be far more negatively and expectations regarding firms' own activity proved to be less bright as well.

In the building industry the loss of confidence was due to the sharp fall in new orders received and to a far more unfavourable assessment of the overall order books

The further decline of confidence in trade is due mainly to the sharp deterioration in the prospects as to employment. Inaddition, demand expectations continued to worsen