© ANTÓNIO COTRIM/LUSA
© CHRISTOPHER NEUNDORF/EPA
Industrial production in the eurozone fell by 0.5 per cent in August compared with July, according to figures released by Eurostat on Thursday, adding to evidence that European manufacturers are struggling to sustain a recovery amid rising energy costs and uncertain demand.
The decline followed a revised contraction of 0.3 per cent in July, while output across the wider European Union fell by 0.3 per cent in August. Compared with the same month last year, eurozone production was down 1.1 per cent, against a decline of 0.2 per cent across the EU as a whole.
Belgium recorded the largest monthly contraction among the member states covered by the release, at 5.1 per cent, followed by Ireland at 3.1 per cent and Portugal at 2 per cent.
The latest industrial production figures underline the uneven performance of Europe’s factories, with losses concentrated in some economies and sectors while others continue to expand.
The sectoral breakdown presents a particularly revealing picture of the pressures facing European industry.
Production of intermediate goods, which include materials and components supplied to other manufacturers, declined by 0.8 per cent across the eurozone in August. Energy production fell by 0.6 per cent, while output of non-durable consumer goods contracted by 2.7 per cent.
By contrast, capital goods production increased by 0.4 per cent, indicating that activity in equipment and machinery manufacturing remained comparatively resilient.
The divergence was also pronounced between member states. Industrial production increased by 6.5 per cent in Sweden, 4.3 per cent in Estonia and 2.6 per cent in the Netherlands.
On an annual basis, Ireland recorded a 15 per cent decline, followed by Belgium at 7.1 per cent and Bulgaria at 5.4 per cent. The Netherlands, meanwhile, registered growth of 9.8 per cent compared with August 2025.
These variations make it difficult to describe Europe’s industrial position as a single, uniform downturn. National production figures reflect different industrial structures, production cycles and exposure to particular markets.
Ireland’s figures, for example, can be influenced by changes in output among large multinational enterprises, while Belgium’s manufacturing economy is particularly exposed to developments in chemicals, pharmaceuticals and energy-intensive production.
Nevertheless, the simultaneous contraction of industrial output across the eurozone reinforces concerns about the strength of the European economic recovery.
The continuing disruption of global energy supplies has complicated the position of European manufacturers, particularly businesses that depend on predictable electricity and gas prices.
The Middle East conflict has increased uncertainty over energy costs and transportation, making production planning more difficult for companies operating with substantial fuel, heating or electricity requirements.
As EU Today reported earlier this week, Brussels has already moved to delay certain methane requirements for energy imports as governments seek to limit additional pressure on gas supplies.
The decision reflects a wider debate over whether the EU’s existing regulatory framework adequately accounts for the international cost disadvantages facing European industrial producers.
Chemicals, metals, fertilisers and other energy-intensive industries must compete with manufacturers operating in markets where energy costs and regulatory requirements can differ considerably.
The problem extends beyond immediate profitability. Persistently unfavourable operating costs can affect decisions about new factories, maintenance, modernisation and the location of future investment.
Those decisions may have longer-lasting economic consequences than monthly fluctuations in production.
The figures arrive as EU governments debate the future of European industrial policy, including the treatment of imported products and the conditions under which companies should qualify for public support.
Recent disagreements over proposed European-content requirements have illustrated divisions between governments seeking greater protection for EU manufacturers and those concerned that restrictive rules could increase costs or disrupt supply chains.
In a recent warning over the proposed Made in Europe framework, Mercedes-Benz chief executive Ola Källenius argued against excluding Britain from industrial arrangements intended to strengthen European production.
The debate is particularly consequential for automotive manufacturers whose supply chains extend across EU borders and into neighbouring countries.
Meanwhile, the proposed EU budget for 2028–2034 has become another focus of disagreement, with member states questioning how much funding should be devoted to industrial competitiveness, strategic technologies and energy infrastructure.
The immediate economic issue is whether European factories can recover production as energy costs remain elevated and external demand fluctuates.
Eurostat’s August figures do not establish how individual government policies have affected output, nor do they determine whether the contraction will continue. They do, however, show that industrial activity entered the autumn with limited momentum.
The next industrial production release, covering September, is scheduled for 16 November and will provide an indication of whether the late-summer weakness persisted into the final quarter of the year.
Inflation in Greece surged to 5.1% in September, while the Eurozone average stood at 3.8%, the European Statistics authority EUROSTAT announced on Friday, October 2, 2026, based on preliminary data.. The Energy index rose by 14.1% Annual inflation in the Eurozone came in at 3.8% in September, up from 3.2% in August, while in Greece […]
The post Inflation in Greece surged to 5.1% in September 2026 appeared first on Keep Talking Greece.
Annual inflation in the eurozone is expected to rise to 3.3% in August 2026, from 2.9% in July, according to a preliminary estimate released on Tuesday, September 1, by the European statistical agency, Eurostat. Looking at the main components of eurozone inflation, energy prices are expected to record the highest annual increase in August (14.3%, […]
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The EU economy’s seasonally adjusted greenhouse gas emissions in the first quarter of 2026 were estimated at 837 million tonnes of CO2-equivalents (CO2-eq), a 0.3% increase compared with the fourth quarter of 2025 (835 million tonnes of CO2-eq). At the same time, there was no change to the EU’s gross domestic product (GDP) in the first quarter of 2026, compared with the last quarter of 2025.
The economic sector with the largest increase in greenhouse gas emissions was electricity, gas, steam and air conditioning supply (+4.8%), while households (-1.3%), manufacturing and transportation and storage (both -0.6%) recorded the biggest decreases.
Source datasets: env_ac_aigg_q and namq_10_gdp
Compared with the first quarter of 2025, emissions went down by 1.2%, while the EU’s GDP increased by 0.8%.
In the first quarter of 2026, seasonally adjusted greenhouse gas emissions increased in 20 EU countries and decreased in 7 countries, compared with the fourth quarter of 2025.
The largest reductions in greenhouse gases were estimated for Slovenia (-5.0%), Luxembourg (-3.8%) and Romania (-2.7%).
The largest increases in greenhouse gas emissions were estimated for Estonia (+9.7%), Finland (+6.4%) and Bulgaria (+4.6%). The increases in these countries are largely due to growing emissions by economic producers in construction and electricity, gas, steam and air conditioning supply.
In the first quarter of 2026, 20 EU countries recorded increases in greenhouse gas emissions, out of which 18 also increased their GDP. 7 countries reduced their greenhouse gas emissions. Out of these, 4 countries recorded a higher or stable GDP.
Source datasets: env_ac_aigg_q and namq_10_gdp
This information comes from data on seasonally adjusted quarterly estimates of greenhouse gas emissions by economic activity, published by Eurostat. Quarterly estimates of greenhouse gas emissions complement quarterly socio-economic data, such as GDP or employment.
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