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EMU: Industrial Production
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | 0.3% | -0.1% to 0.8% | -0.2% | 0.1% | 0.3% |
| Year over Year | -0.4% | -0.4% to 0.2% | -1.2% | 0.3% | 0.4% |
Highlights
Industrial activity in the euro area weakened in May 2026, signalling a loss of momentum following the modest expansion recorded in April. Seasonally adjusted industrial production declined by 0.2 percent month-over-month, reversing April’s 0.3 percent growth. The broader annual picture was more concerning, with output falling by 1.2 percent compared with May 2025, substantially exceeding the 0.3 percent decline recorded across the European Union.
The monthly contraction was primarily driven by reductions in durable consumer goods and intermediate goods, which declined by 1.1 percent and 0.3 percent, respectively. These movements suggest continued weakness in household demand for major purchases and subdued activity within industrial supply chains. Nevertheless, energy production increased strongly by 2.2 percent, while capital goods and non-durable consumer goods recorded moderate gains.
Annual sectoral performance revealed a pronounced imbalance. Capital goods, energy and intermediate goods expanded, indicating some resilience in investment-related and upstream industrial activity. However, production of durable consumer goods fell by 3.0 percent, while non-durable consumer goods declined sharply by 10.7 percent. In summary, the figures indicate that the euro area’s industrial sector remained under pressure, with consumer-oriented manufacturing representing the principal source of weakness. The latest update takes the RPI to minus 17 and the RPI-P to minus 7, meaning that economic activities are now lagging market expectations in the euro area.
Market Consensus Before Announcement
Output expected up by 0.3 percent on the month in May after a 0.1 percent increase in April.
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.