Industrial production in the eurozone and the EU rose by 0.2% in March

In March, seasonally adjusted industrial production rose by 0.2% in both the eurozone and the EU compared with February 2026, according to Eurostat.

This moderate growth followed a 0.4% increase in February (according to revised data), indicating a stabilization of the industrial sector, although the pace of recovery is slightly lower than analysts’ forecasts (0.3%).

Key indicators by sector (March compared to February 2026):

• intermediate goods: production rose by 0.5% in the eurozone and by 0.4% in the EU;
• energy: growth of 0.8% was observed in the eurozone and 0.6% in the EU;
• capital goods: the sector showed a 0.3% decline in the Eurozone, while remaining unchanged in the EU;
• durable consumer goods: growth of 1.1% in the Eurozone and 1.0% in the EU;
• non-durable consumer goods: a 0.4% decline in both zones.

On a year-on-year basis (March 2026 to March 2025), industrial production in the Eurozone fell by 2.1%, and in the EU by 1.9%. This decline was slightly deeper than market expectations (-1.7%).

Among the bloc’s largest economies, growth trends varied:

• Spain recorded significant growth of +2.4%;
• France showed positive growth of +1.0%;
• Italy grew by +0.7%;
• In contrast, Germany recorded a decline in production of -1.2%, which continues to weigh on the region’s overall performance.

Despite monthly growth, the industrial sector remains under pressure due to subdued demand and high borrowing costs. The released data, along with first-quarter GDP figures (0.1% growth), underscore the slow pace of Europe’s economic recovery. Following the report’s publication, the euro showed a slight decline against the U.S. dollar as investors assess the likelihood of further moves by the European Central Bank.

As reported by GMK Center, the annual average industrial production index for 2025 rose by 1.5% in both the EU and the eurozone, indicating a weak but steady recovery in industry following volatility throughout the year.

As a reminder, at the end of 2025, the European Union’s GDP grew by 1.6% year-on-year, while the eurozone economy expanded by 1.5%. In the fourth quarter of 2025, GDP increased by 1.4% year-on-year in the EU and by 1.3% year-on-year in the eurozone. On a quarterly basis, seasonally adjusted GDP grew by 0.3% quarter-on-quarter in both the EU and the eurozone.