Eurozone industrial production falls in December

(Sharecast News) - Industrial production in the euro area fell by 1.4% month on month in December, reversing November's 0.3% increase and marking the steepest contraction since April, according to first estimates from Eurostat on Monday. The decline, which broadly matched expectations for a 1.5% drop, snapped a three-month run of gains.

Across the wider EU, output fell 0.8% after edging down 0.1% in November.

On an annual basis, eurozone industrial production rose 1.2% in December, slowing from 2.2% growth in November and coming in slightly below forecasts.

In the EU, output was up 1.4% year on year, also easing from the previous month.

For 2025 as a whole, industrial production increased by 1.5% in both the euro area and the EU, marking the bloc's first annual expansion since 2022.

The monthly decline in December was driven primarily by capital goods, where output dropped 1.9% in the euro area following a strong 2.6% rise in November.

Production of energy and non-durable consumer goods each fell 0.3%, while intermediate goods slipped 0.1%.

Durable consumer goods provided a limited offset, rising 0.2%.

In the EU, capital goods fell 1.4% and energy declined 0.4%, while intermediate goods rose 0.1%, durable consumer goods increased 0.5% and non-durable consumer goods climbed 0.6%.

Among member states, the largest monthly falls were recorded in Slovakia, down 4.9%, Germany, down 2.9%, and Spain, down 2.6%.

The strongest gains were seen in Luxembourg, up 6.4%, Sweden, up 4.4%, and Malta, up 4.2%.

On an annual basis, Poland posted the largest increase at 6.9%, followed by Sweden at 4.8% and Croatia at 4.5%, while Slovakia, Luxembourg and Bulgaria recorded the steepest declines.

Germany was a key drag on the bloc's December performance, with output in Europe's largest economy hit by weaker car production.

Reporting by Josh White for Sharecast.com.