Eurostat’s latest estimates show that seasonally adjusted industrial production fell by -0.5% in the euro area and -0.3% across the EU in August 2026, compared with July.
This follows revised declines of -0.3% in the euro area and -0.4% in the EU in July.
Monthly figures can be volatile, so three-month comparisons provide a clearer indication of the underlying trend. Comparing March-May with June-August 2026, industrial production fell by approximately -0.3% in the euro area and -0.2% in the EU, suggesting that overall industrial activity remains subdued.
Manufacturing accounts for the largest share of industrial production, although the overall index also includes mining and quarrying, and energy supply. This makes direct comparisons with UK manufacturing data less straightforward, but the capital goods series provides a useful indication of activity in markets relevant to machinery and industrial equipment.
In August, capital goods output increased by +0.4% in the euro area and +0.7% in the EU, despite the decline in overall industrial production. Compared with a year earlier, capital goods output was +3.0% higher in the euro area and +3.6% higher across the EU, indicating a more positive picture for this important market segment.
Performance across EU Member States remained mixed. Compared with August 2025, industrial production increased in 17 of the 27 Member States, fell in nine and was unchanged in Italy. The strongest annual increases were recorded in the Netherlands (+9.8%), Hungary (+8.8%) and Denmark (+8.3%), while the largest falls were in Ireland (-15.0%), Belgium (-7.1%) and Bulgaria (-5.4%).
Overall, the latest figures point to continued weakness in European industrial production, with two consecutive monthly declines and a slight fall over the latest three-month period. However, the stronger performance of capital goods offers a more encouraging signal for the machinery and industrial equipment market, with output in this segment continuing to grow year-on-year. You can get the full details from the Eurostat News Release which can be downloaded from their website at https://ec.europa.eu/eurostat/news/euro-indicators (15 October) or on request from MTA.