Eurozone industrial production rebounds in January

Eurozone industrial output saw a strong rebound of 0.8% month-over-month in January 2025, exceeding market expectations of a 0.6% growth and reversing the revised 0.4% decline in December.

Eurozone industrial production rebounds in January

This uptick was largely driven by a notable recovery in the production of intermediate goods, which surged by 1.6%, compared to a decline of 1.7% in December. Capital goods output also showed a modest increase of 0.5%, recovering from a larger drop of 1.9% in the previous month. These positive developments in key sectors helped offset declines in other areas of the industrial output. However, there were notable contractions in other segments, including non-durable consumer goods, which fell by 3.1% following a strong 7.2% increase in December, and energy production, which declined by 1.2%, a reversal from a 1.5% rise in December. Durable consumer goods also showed a slight decline of 0.2%, after posting a modest gain of 0.3% in the prior month.

Year-over-year figures

On an annual basis, Eurozone industrial output showed signs of stabilization in January, avoiding the expected 0.9% decline and marking the end of a 20-month period of contraction. This development signals a potential turning point for the region’s industrial sector, as it emerges from a prolonged period of weakness. The data suggests that while challenges remain, there may be a gradual recovery underway, supported by improving production in critical industries.