Belgium's November Consumer Confidence Declines to 15-Year Low

By Jurjen van de Pol

Nov. 20 (Bloomberg) -- Belgian consumer confidence fell to the lowest level in 15 years this month on increased pessimism about the labor market as economic growth stagnates.

The sentiment index for Belgium, the sixth-largest economy in the euro area, dropped to minus 22 from minus 17 in October, the National Bank of Belgium in Brussels said today in an e- mailed statement. The November reading is the lowest since December 1993.

Consumer sentiment is ``in marked decline,'' the central bank said. ``This latest drop reflects the climate of persistent turmoil on the financial markets and the deteriorating economic outlook.''

The economy may be heading for the first recession in six years as the global financial turmoil undermines expansion across Europe and forces governments to rescue banks, Belgian central bank Governor Guy Quaden said on Oct. 31. Growth in Belgium was the slowest in more than three years in the third quarter.

The drop in consumer confidence this month ``is mainly due to the much increased pessimism among consumers about unemployment prospects,'' the central bank said. The sub-index for the unemployment outlook in the next 12 months rose to 57 from 41 in October, signaling deterioration, the bank said.

AstraZeneca Plc today said it will eliminate 1,400 jobs and close plants in Belgium, Spain and Sweden as the U.K.'s second- largest drugmaker expands cost-cutting measures amid increased competition from generic medicines.

``Households' expectations concerning their capacity to save have been revised downwards once again,'' the Belgian bank said.

To contact the reporter on this story: Jurjen van de Pol in Amsterdam jvandepol@bloomberg.net