FX.co ★ Euro Area Industrial Production Falls Less than Expected

Euro area industrial production slipped by 0.1% in July 2026, matching June’s decline but faring slightly better than the 0.2% contraction forecast by markets. The monthly fall was driven primarily by weaker output of non-durable consumer goods, which decreased by 1.6% (after a 1.8% drop in June), and by a slowdown in energy production growth to 0.9% from 1.4%. In contrast, intermediate goods output returned to growth, rising 0.3% after a 0.9% decline, while capital goods production increased by 0.5%, reversing a 1.8% fall in the previous month. Production of durable consumer goods also strengthened, expanding 0.9% compared with 0.4% previously. Performance differed across the bloc’s major economies: industrial output fell by 1.5% in Germany and 0.4% in France, while Spain posted a 0.6% increase. On an annual basis, euro area industrial production was flat in July, slightly beating expectations for a 0.1% decline.