| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | -0.5% | -1.0% to 0.7% | -1.3% | 1.7% | 1.1% |
| Year over Year | 2.7% | 2.5% to 3.7% | 0.2% | 3.7% | 3.1% |
Highlights
Euro area industrial production slipped by 1.3 percent in June 2025 compared with May, reversing part of the previous month's 1.1 percent growth (revised down from 1.7 percent). On an annual basis, output edged up by 0.2 percent, signalling only marginal growth over the year.
Monthly performance was mixed across sectors. Energy output rose sharply by 2.9 percent, the only category to record a solid gain, while intermediate goods fell by 0.2 percent, capital goods by 2.2 percent, durable consumer goods by 0.6 percent, and non-durable consumer goods saw the steepest drop at 4.7 percent.
Year-over-year comparisons told a different story, with energy output up 4.6 percent and non-durable consumer goods surging 5.8 percent, but declines persisting in intermediate goods (minus 1.8 percent), capital goods (minus 2.1 percent), and durable consumer goods (minus 4.0 percent).
Regionally, industrial production on an annual basis fell in Germany (minus 3.8 percent after 0.2 percent) and in Italy (minus 0.9 percent after 1.0 percent). However, it rose in Spain (2.5 percent after 1.6 percent) and France (1.9 percent after minus 1.3 percent) on an annual basis.
The figures suggest that energy demand remains a key growth driver, while weaker capital and durable goods production reflect subdued investment and consumer sentiment. The latest update takes the RPI to minus 1 and the RPI-P to minus 3, meaning that economic activities are now within the expectations of the euro area economy.
Monthly performance was mixed across sectors. Energy output rose sharply by 2.9 percent, the only category to record a solid gain, while intermediate goods fell by 0.2 percent, capital goods by 2.2 percent, durable consumer goods by 0.6 percent, and non-durable consumer goods saw the steepest drop at 4.7 percent.
Year-over-year comparisons told a different story, with energy output up 4.6 percent and non-durable consumer goods surging 5.8 percent, but declines persisting in intermediate goods (minus 1.8 percent), capital goods (minus 2.1 percent), and durable consumer goods (minus 4.0 percent).
Regionally, industrial production on an annual basis fell in Germany (minus 3.8 percent after 0.2 percent) and in Italy (minus 0.9 percent after 1.0 percent). However, it rose in Spain (2.5 percent after 1.6 percent) and France (1.9 percent after minus 1.3 percent) on an annual basis.
The figures suggest that energy demand remains a key growth driver, while weaker capital and durable goods production reflect subdued investment and consumer sentiment. The latest update takes the RPI to minus 1 and the RPI-P to minus 3, meaning that economic activities are now within the expectations of the euro area economy.
Market Consensus Before Announcement
Output expected down 0.5 percent on quarter and up 2.7 percent on year in June after rising 1.7 percent and 3.7. percent respectively in May.
Definition
Industrial production measures the physical output of factories, mines and utilities. The measure provided by Eurostat excludes the volatile construction subsector for which data are released a few days later.
Description
Industrial production measures changes in the volume of output for the EMU's member states. The industrial production index provides a measure of the volume trend in value added at factor cost over a given reference period, excluding VAT and other similar deductible taxes. The preferred number is industrial production excluding construction. As with other EMU statistics, the data are provided by the national statistics offices to Eurostat (the European Union statistical agency) where it is combined to produce an overall output measure.
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that will not lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios.
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that will not lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios.
