EU industrial production falls in Jan 2026 amid manufacturing slowdown
The seasonally adjusted industrial production fell by 1.5 per cent in the euro area and 1.6 per cent in the European Union (EU) in January 2026 compared with December 2025, reflecting weaker activity across several manufacturing segments despite a rise in energy output, according to the latest estimates by the Eurostat.
The latest decline follows a drop recorded in December 2025, when production decreased by 0.6 per cent in the euro area and 0.1 per cent in the EU. On an annual basis, industrial activity also remained subdued. Compared with January 2025, industrial production declined 1.2 per cent in the euro area and 0.6 per cent in the EU, indicating continued softness across several manufacturing segments, Eurostat said in a press release.
Industrial production in January 2026 fell 1.5 per cent in the euro area and 1.6 per cent in the EU MoM, while declining 1.2 per cent and 0.6 per cent YoY respectively, according to Eurostat.
Most manufacturing segments recorded lower output, particularly non-durable consumer goods, while energy production increased.
Industrial performance across member states showed mixed trends during the period.
Across industrial groupings, intermediate goods production in the euro area declined by 1.9 per cent month on month (MoM), while capital goods output dropped by 2.3 per cent. Production of durable consumer goods also decreased by 1.9 per cent, while non-durable consumer goods recorded the steepest fall at 6 per cent. In contrast, energy production increased by 4.7 per cent during the month.
Output of intermediate goods fell by 2 per cent, while capital goods production declined by 2.3 per cent. Durable consumer goods dropped by 1.9 per cent, and non-durable consumer goods decreased sharply by 6.0 per cent. Meanwhile, energy production rose by 4.2 per cent.
Among member states, the sharpest monthly declines in industrial production were recorded in Ireland (-9.8 per cent), Luxembourg (-4.3 per cent) and Sweden (-4.1 per cent). The strongest increases were observed in Portugal (+4.2 per cent), Latvia (+3.3 per cent) and Lithuania (+2.7 per cent).
In annual terms, euro area industrial output showed mixed trends across sectors. Intermediate goods production declined by 2.1 per cent, while durable consumer goods fell by 3.5 per cent and non-durable consumer goods dropped by 6.4 per cent. However, energy production increased by 5.8 per cent, and capital goods output rose by 1.1 per cent compared with January 2025.
Across the EU, intermediate goods production decreased by 2.2 per cent, while durable consumer goods fell by 3.5 per cent and non-durable consumer goods declined by 4.5 per cent. Meanwhile, energy output increased by 5.2 per cent, and capital goods production rose by 1.7 per cent year on year.
At the country level, the largest annual declines were recorded in Luxembourg (-14.9 per cent), Ireland (-13.1 per cent) and Bulgaria (-8.6 per cent). Conversely, Latvia (+13.3 per cent), Denmark (+11.5 per cent) and Estonia (+5.9 per cent) reported the strongest annual growth in industrial production.
Fibre2Fashion News Desk (SG)
