EU Industrial Production Slows Amid Inflation Concerns

The European Union's industrial production grew modestly in June 2026, according to preliminary data from Eurostat. The seasonally adjusted index increased by 0.2% month-on-month in the EU and remained unchanged in the eurozone. Among member states, Denmark recorded a significant monthly gain of 5.4%, followed closely by Croatia at 5.2%. On the other hand, Luxembourg saw a decline of 10.7%, while Portugal and Estonia fell by 3.9% and 2.2% respectively.

On an annual basis, industrial production in the eurozone grew by 0.1% in June, while it increased by 0.6% in the EU. The energy sector was one of the few bright spots, with production rising by 1.5% month-on-month in the eurozone and 1% in the EU.

The European Central Bank (ECB) also revised its inflation forecast for the eurozone upwards to 3% in 2026, up from 2.6% in March. The growth forecast for this year was lowered by 0.1 percentage points to 0.8%. These revisions reflect ongoing concerns about inflation and economic growth in the region.