According to Eurostat’s latest release, industrial production in the euro area fell 1.3 percent in June 2025 compared to May, marking a sharp reversal from the 1.1 percent increase recorded the previous month. Economists noted that the contraction highlights ongoing weakness in manufacturing, which continues to struggle with weak demand, high borrowing costs, and subdued exports.
Breaking down the figures, non-durable consumer goods plunged 4.7 percent, the steepest decline among categories. Capital goods output slipped 2.2 percent, while durable consumer goods and intermediate goods were down 0.6 percent and 0.2 percent, respectively. Only energy production provided some support, rising by 2.9 percent during the month. Compared with June 2024, euro area industrial production was also lower, underscoring persistent challenges for the region’s economy heading into the second half of the year.
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