December brings first monthly decline since summer
Industrial activity in the euro area contracted in December, ending a four-month stretch of expansion, according to new figures released by Eurostat. Output fell by 1.4% compared with November, reversing the previous month’s 0.3% increase and marking the first decline since August.
The downturn was broad-based across most major industrial categories. Capital goods recorded the sharpest drop, falling 1.9% month on month. Energy production and non-durable consumer goods each slipped by 0.3%, while intermediate goods declined by 0.1%. Durable consumer goods stood out as the sole area of growth, rising 0.2%.
Annual growth moderates
On a yearly basis, industrial production in the euro area expanded 1.2% in December. Although still positive, this pace represented a clear slowdown from the 2.2% annual increase reported in November. The last time annual growth slowed to a similar level was in August 2025.
Across the broader European Union, the picture was somewhat weaker. Output in the EU27 fell 0.8% on a monthly basis after a marginal 0.1% contraction in November. Year-on-year growth came in at 1.4%, down from 2.0% the previous month.
Country-level divergences
Performance varied significantly among member states. Slovakia, Germany and Spain registered the largest monthly declines, reflecting softness in key manufacturing hubs. In contrast, Luxembourg, Sweden and Malta posted the strongest gains during the month, partially offsetting broader weakness.
Despite December’s setback, the full-year figures for 2025 remained moderately positive. Industrial output rose by an average of 1.5% over the year in both the euro area and the EU as a whole.
Momentum under pressure
The December pullback suggests that industrial momentum lost steam toward year-end. While durable consumer goods showed resilience, weakness in capital goods and energy production weighed heavily on aggregate performance.
Whether the slowdown reflects temporary volatility or signals a more sustained cooling phase will likely depend on demand conditions, global trade dynamics and investment trends in early 2026.