Eurozone industrial production declined by 1.5% month-on-month in January 2026, following a revised 0.6% drop in December and sharply undershooting market expectations of a 0.6% increase. This marked the steepest monthly contraction since April 2025 and reflected broad-based weakness across key sectors. Output of non-durable consumer goods plunged 6.0% (vs. -0.4% in December), capital goods production fell 2.3% (vs. -0.7%), durable consumer goods slipped 1.9% (vs. -0.1%), and intermediate goods were down 1.9% (vs. -0.2%). In contrast, energy output rebounded by 4.7%, ending a two-month sequence of declines.
Among the Eurozone’s largest economies, industrial output fell in Germany (-1.3%), Italy (-0.6%) and Spain (-0.5%), while it rose in France (+0.5%) and was flat in the Netherlands (0.0%). On a yearly basis, industrial production contracted by 1.2%, the first annual decline in twelve months and a notable disappointment compared with analysts’ forecasts for 1.4% growth.
