Eurozone industrial production contracted for a second consecutive month in August, falling 0.5% mom against expectations for a 0.1% increase. July’s reading was revised downward from an initially reported 0.1% decline to a 0.3% contraction, reinforcing evidence of persistent weakness in industrial activity. On an annual basis, production deteriorated from -0.3% to -1.1% yoy, marking a sharper decline than in the previous month. The broader EU also recorded weaker output, with industrial production falling 0.3% mom and 0.2% yoy. The combination of disappointing August figures and downward revisions suggests that Eurozone industry continues to struggle to regain momentum, although the weakness remains uneven across sectors.
Non-durable consumer goods remained the weakest industrial category, with production contracting 2.7% mom for the second consecutive month. Annual output plunged 9.1%, worsening substantially from July’s 4.8% decline. Intermediate goods production also reversed from 0.2% growth to a 0.8% contraction, while energy output slipped from stagnation to a 0.6% decline. However, capital goods production remained relatively resilient, expanding 0.4% mom following July’s 0.7% increase, with annual growth strengthening from 1.6% to 3.0%. Durable consumer goods production also edged up 0.2%. The divergence highlights persistent weakness in non-durable consumer goods and intermediate goods manufacturing, while investment-related production continues to provide some support.
Industrial performance also varied considerably across major Eurozone economies, with Germany returning to modest growth while several others contracted. German production rebounded 0.4% mom following July’s 1.7% decline, while the Netherlands maintained strong expansion at 2.6%. However, Italy’s output reversed from 0.6% growth to a 1.3% contraction, and Spain’s production fell 0.8% after increasing 0.6% previously. France recorded another decline of 0.3%, while Ireland and Belgium suffered sharper contractions of 3.1% and 5.1%, respectively. Germany’s modest recovery and continued capital goods growth provide some counterbalance, but the broader figures point to an industrial sector struggling with sustained and uneven weakness. The second consecutive monthly contraction suggests that a convincing recovery in Eurozone industrial activity has yet to emerge.
Data Summary — Eurozone August 2026 Industrial Production
Headline Industrial Production
| Indicator | July | August |
|---|---|---|
| Eurozone Industrial Production m/m | -0.3% | -0.5% |
| Eurozone Industrial Production y/y | -0.3% | -1.1% |
| EU Industrial Production m/m | -0.4% | -0.3% |
| EU Industrial Production y/y | +0.2% | -0.2% |
Consensus: Eurozone industrial production was expected to increase 0.1% mom, compared with the actual 0.5% contraction.
Eurostat revised July’s Eurozone monthly reading downward from -0.1% to -0.3%, adding to the weakness in the August report.
Eurozone Industrial Components
| Component | July m/m | August m/m | August y/y |
|---|---|---|---|
| Intermediate Goods | +0.2% | -0.8% | -0.4% |
| Energy | 0.0% | -0.6% | +3.1% |
| Capital Goods | +0.7% | +0.4% | +3.0% |
| Durable Consumer Goods | +0.4% | +0.2% | +0.4% |
| Non-Durable Consumer Goods | -2.7% | -2.7% | -9.1% |
Country Performance
| Country | July m/m | August m/m | August y/y |
|---|---|---|---|
| Eurozone | -0.3% | -0.5% | -1.1% |
| Germany | -1.7% | +0.4% | +0.4% |
| France | -0.7% | -0.3% | +0.4% |
| Italy | +0.6% | -1.3% | 0.0% |
| Spain | +0.6% | -0.8% | +1.2% |
| Netherlands | +2.7% | +2.6% | +9.8% |
| Ireland | +1.4% | -3.1% | -15.0% |
| Belgium | +0.8% | -5.1% | -7.1% |
Key Takeaways
- Eurozone industrial production contracts for a second consecutive month: Output fell 0.5% mom in August, missing expectations for 0.1% growth. July’s contraction was revised deeper from 0.1% to 0.3%, while annual production declined 1.1%.
- Non-durable consumer goods remain the weakest category: Production contracted 2.7% mom for the second consecutive month, while the annual decline deepened from 4.8% to 9.1%, highlighting persistent weakness in this segment.
- Intermediate goods and energy output deteriorate: Intermediate goods production reversed from 0.2% growth to a 0.8% contraction, while energy output declined 0.6% after stagnating in July.
- Capital goods provide some resilience: Capital goods production increased 0.4% mom, with annual growth accelerating from 1.6% to 3.0%. Durable consumer goods also recorded modest growth, indicating that industrial weakness was not uniform.
- Germany rebounds, but weakness persists elsewhere: German production recovered 0.4% after July’s 1.7% contraction, while the Netherlands expanded 2.6%. However, Italy, Spain, France, Ireland and Belgium recorded declines, reinforcing the uneven industrial picture.
