Euro Area Industrial Production Falls in June Amid Diverging Sector Trends

Industrial production in the euro area dropped by 1.3 per cent in June 2025 compared with May 2025, according to estimates released by Eurostat, the statistical office of the European Union. Across the broader EU, output declined by 1.0 per cent over the same period. The fall comes after a positive May, when industrial production had risen by 1.1 per cent in the euro area and by 0.8 per cent in the EU.

Year on year, however, output in June 2025 showed only modest growth. Compared with June 2024, industrial production in the euro area increased by 0.2 per cent, while the EU registered a 0.5 per cent rise.

Breaking the figures down by sector, euro area production of intermediate goods fell by 0.2 per cent in June compared with May. Energy stood out with an increase of 2.9 per cent, but capital goods production contracted by 2.2 per cent. Durable consumer goods declined by 0.6 per cent, while non-durable consumer goods posted the sharpest monthly drop at 4.7 per cent.

In the EU as a whole, intermediate goods also decreased by 0.2 per cent on the month. Energy output rose by 2.7 per cent, but capital goods production slid by 1.7 per cent. Durable consumer goods fell by 0.4 per cent, while non-durable consumer goods decreased by 3.7 per cent.

Among Member States, the steepest monthly decline came from Ireland, where industrial production plunged 11.3 per cent. Portugal followed with a drop of 3.6 per cent, and Lithuania recorded a fall of 2.8 per cent. On the upside, Belgium registered the strongest growth at 5.1 per cent. France and Sweden each posted increases of 3.8 per cent, while Greece grew by 3.3 per cent.

Looking at annual changes, euro area production of intermediate goods decreased by 1.8 per cent in June 2025 compared with June 2024. Energy output rose strongly by 4.6 per cent, but capital goods declined by 2.1 per cent. Durable consumer goods fell by 4.0 per cent, while non-durable consumer goods jumped by 5.8 per cent.

In the EU, intermediate goods production dropped 1.6 per cent year on year, while energy rose by 3.5 per cent. Capital goods decreased by 1.3 per cent, durable consumer goods contracted by 3.5 per cent, and non-durable consumer goods advanced by 5.3 per cent.

On a country basis, Sweden recorded the largest annual increase at 13.4 per cent, followed by Ireland with 10.5 per cent and Latvia at 7.3 per cent. By contrast, Bulgaria registered the sharpest decline at 8.2 per cent, ahead of Hungary at 4.9 per cent and Slovenia at 4.3 per cent.

By fLEXI tEAM