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EMU: Industrial Production
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | -0.5% | -0.9% to -0.2% | -0.1% | 0.0% | -0.1% |
| Year over Year | -0.3% | -0.5% to -0.1% | 0.0% | 0.1% | -0.3% |
Highlights
Euro area industrial activity remained subdued in July 2026, with seasonally adjusted production declining by 0.1 percent for the second consecutive month. The absence of annual growth indicates that the industrial sector has entered a period of stagnation rather than a decisive recovery. The headline contraction, however, conceals notable differences across industries.
Monthly growth in energy and durable consumer goods, both at 0.9 percent, alongside increases in capital goods and intermediate goods, suggests some resilience in investment-related and upstream production. Nevertheless, these gains were outweighed by a sharp 1.6 percent fall in non-durable consumer goods, potentially reflecting weak household demand and pressure on consumer-facing manufacturers.
The annual figures present a similarly mixed picture. Energy production increased strongly by 4.0 percent, while capital goods grew by 1.7 percent, indicating continued investment and energy-sector momentum. Conversely, non-durable consumer goods declined by 4.5 percent, accompanied by a 1.2 percent reduction in durable goods.
In summary, the latest data suggest that euro-area industry remains vulnerable, with sector-specific growth insufficient to generate broad-based industrial expansion. The latest updates take the RPI to minus 8 and the RPI-P to minus 10, meaning that economic activities are now within the expectations of the euro area economy.
Market Consensus Before Announcement
Declines expected in industrial production for July, 0.5 percent on the month, and 0.3 percent on year.
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.