| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | 0.5% | -1.3% to 0.7% | 0.3% | -1.3% | -0.6% |
| Year over Year | 1.7% | 0.9% to 3.7% | 1.8% | 0.2% | 0.7% |
Highlights
Industrial production in the euro area showed signs of recovery in July 2025, rising by 0.3 percent from June, reversing the 0.6 percent decline seen the previous month. On a yearly basis, production was up by 1.8 percent, indicating modest but steady growth momentum.
Monthly dynamics reveal a mixed picture with capital goods (1.3 percent), non-durable consumer goods (1.5 percent), and durable goods (1.1 percent) recorded gains, suggesting rising demand and investment confidence. Intermediate goods grew slightly (0.5 percent), while energy output contracted sharply (minus 2.9 percent), reflecting continued volatility in the sector.
In the annual comparison, structural patterns emerge more clearly. Capital goods (2.1 percent) and non-durable consumer goods (6.6 percent) drove growth, pointing to investment resilience and consumer demand for everyday items. In contrast, intermediate goods (minus 0.9 percent) and energy (minus 0.5 percent) weakened, highlighting supply-chain pressures and a subdued energy landscape. Durable consumer goods edged down (minus 0.1 percent), suggesting limited household spending on big-ticket items.
Overall, the figures illustrate a two-speed industrial recoveryinvestment and essential consumer demand remain robust, but energy fragility and weaker intermediate goods temper growth. This balance reflects both resilience and persistent challenges in the euro area economy, taking the RPI to 0 and the RPI-P to minus 12. This means that economic activities are now slightly behind the expectations of the euro area economy.
Monthly dynamics reveal a mixed picture with capital goods (1.3 percent), non-durable consumer goods (1.5 percent), and durable goods (1.1 percent) recorded gains, suggesting rising demand and investment confidence. Intermediate goods grew slightly (0.5 percent), while energy output contracted sharply (minus 2.9 percent), reflecting continued volatility in the sector.
In the annual comparison, structural patterns emerge more clearly. Capital goods (2.1 percent) and non-durable consumer goods (6.6 percent) drove growth, pointing to investment resilience and consumer demand for everyday items. In contrast, intermediate goods (minus 0.9 percent) and energy (minus 0.5 percent) weakened, highlighting supply-chain pressures and a subdued energy landscape. Durable consumer goods edged down (minus 0.1 percent), suggesting limited household spending on big-ticket items.
Overall, the figures illustrate a two-speed industrial recoveryinvestment and essential consumer demand remain robust, but energy fragility and weaker intermediate goods temper growth. This balance reflects both resilience and persistent challenges in the euro area economy, taking the RPI to 0 and the RPI-P to minus 12. This means that economic activities are now slightly behind the expectations of the euro area economy.
Market Consensus Before Announcement
Output expected up 0.5 percent on month and 1.7 percent on year in July after falling 1.3 percent and rising 0.2 percent respectively in June.
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.
