Euro Area Industrial Output Falls for 3rd Month

Industrial production in the Euro Area fell 0.5% month-on-month in August 2026, missing expectations of a flat reading and following a 0.3% decrease in July. It marks the third consecutive month of falling production in the region. Output declined for intermediate goods (-0.8% vs 0.2% in July), energy (-0.6% vs flat reading), and non-durable consumer goods (-2.7%, the same as in July). Also, production soften for capital goods (0.4% vs 0.7%) and durable consumer goods (0.2% vs 0.4%). Output fell in Spain (-0.8%), France (-0.3%) and Italy (-1.3%), but rose in Germany (0.4%). Year-on-year, output fell 1.1%, extending a 0.3% decrease in the previous month.

Euro Area industrial production declined 0.1% in July 2026, matching the fall recorded in June but performing slightly better than the 0.2% contraction expected by markets. The monthly decline reflected weaker output of non-durable consumer goods, which fell 1.6% (vs 1.8% in June) while energy production growth slowed to 0.9% from 1.4%. In contrast, production of intermediate goods recovered by 0.3% after a 0.9% decline, while capital-goods output increased 0.5%, reversing the previous month’s 1.8% drop. Durable consumer-goods production also strengthened, rising 0.9% from 0.4% previously. Performance varied across the bloc’s largest economies, with industrial output falling 1.5% in Germany and 0.4% in France, while Spain recorded a 0.6% increase. On an annual basis, Euro Area industrial production was unchanged in July, slightly outperforming expectations for a 0.1% decline.

Industrial production in the Euro Area was unchanged in June 2026, after a 0.3% rise in May and compared with market expectations of a 0.1% decrease. Output rebounded for durable consumer goods (0.3% vs -1.3% in May) and continued to increase for non-durable consumer (3% vs 3.3%) and energy (1.5% vs 2.6%). On the other hand, production fell for intermediate goods (-0.8% vs -0.2%) and capital goods (-1.4% vs 0.5%). Among the bloc’s largest economies, industrial production rose 0.2% in Germany, was unchanged in France and declined 0.7% in Spain. Year-over-year, industrial production increased 0.1%, beating market expectations for a 0.8% fall.