Industrial production in the euro area increased by 1.1% in February 2025 compared to January, surpassing expectations and marking a positive shift after a prolonged downturn.
The broader European Union (EU) also saw growth, with output rising by 1.0% month-on-month. Year-on-year, the euro area experienced a 1.2% increase, while the EU’s output grew by 0.6%.
The growth was primarily driven by a significant rise in non-durable consumer goods production, which surged by 2.
8% in the euro area and 2.7% in the EU. Capital goods also saw steady gains, while intermediate goods experienced marginal increases.
However, energy and durable consumer goods production declined in certain regions.
Ireland recorded the highest monthly growth, with industrial production increasing by 10.8%, followed by Belgium and Luxembourg. Conversely, countries like Croatia and Greece experienced notable contractions.
Despite the positive monthly figures, output remains below the levels seen in late 2022, when the industrial downturn began, influenced by high energy costs and increased competition from Asia.
Economists caution that persistent U.S. tariffs could pose risks to future growth, potentially affecting export opportunities.
Overall, while the February data indicates a rebound in industrial activity, challenges persist, and the sustainability of this growth remains uncertain.
