Eurozone industrial production fell sharply in January, highlighting renewed weakness in the region’s manufacturing sector. Output declined by -1.5% month-on-month, well below expectations for a 0.7% increase, suggesting that industrial momentum at the start of 2026 was significantly weaker than anticipated.
The decline was broad-based across most categories. Production of intermediate goods dropped by -1.9%, while capital goods output fell by -2.3%. Durable consumer goods production also declined by -1.9%, and non-durable consumer goods saw the steepest fall with a -6.0% drop. Energy output was the only bright spot, rising by 4.7% during the month and partially cushioning the overall decline.
Across the broader European Union, industrial production fell by -1.6% month-on-month. Ireland recorded the largest contraction with a -9.8% drop, followed by Luxembourg (-4.3%) and Sweden (-4.1%). In contrast, a few smaller economies posted gains, with Portugal leading the increases at +4.2%, followed by Latvia (+3.3%) and Lithuania (+2.7%).
