FX.co ★ Eurozone industrial output posts zero growth in June amid energy crisis

According to Eurostat, industrial production in the European Union rose 0.2% in June 2026 compared with May, while the euro area recorded zero growth (0.0%). Year‑on‑year figures also showed near‑zero increases: production was up 0.1% in the euro area and 0.6% across the EU. The most pronounced declines hit capital goods and equipment (down 1.4% in the euro area and 0.9% in the EU), as well as intermediate goods used for further assembly.

Crisis trends are particularly visible in the bloc’s leading economies. German industry remains 7.9% below its 2021 baseline (index at 92.1 points), contracting year‑on‑year in each month in the first half of the year and falling 0.5% in June. Italy’s output dropped 1.0% month‑on‑month and 0.6% year‑on‑year. Among other EU members, the deepest annual falls were recorded in Luxembourg (‑7.9%), Romania (‑5.6%), and Estonia (‑4.6%).

The stagnation in European industry is being exacerbated by high energy tariffs caused by the Middle East conflict and the withdrawal of Russian supplies, as well as by a loss of competitiveness in global markets. The European Commission estimates that EU exports will rise just 0.9% in 2026, euro area GDP growth will slow to 0.9% (1.1% for the EU), and inflation will settle around 3.0–3.1%. The commission warns that a protracted energy crisis risks further declines in investment and business activity for European manufacturers.