Eurozone Industrial Output Recovers: Germany Leads January Growth
Eurozone industrial production climbed 0.8% in January 2025 compared to December, according to data released by Eurostat on March 13.
This growth surpassed market expectations of 0.6% and reversed the revised 0.4% decline recorded in December 2024. Germany powered the rebound with a strong 2.3% expansion, offsetting downturns in other major economies.
Spain reported a 1% production drop while Italy also experienced declining output. The production increase stemmed primarily from intermediate goods, which jumped 1.6% after December’s 1.7% decline.
Capital goods production grew modestly at 0.5%, contrasting with December’s 1.9% fall. However, several sectors continued to struggle. Non-durable consumer goods saw the steepest decline at 3.1%, while energy production fell 1.2% and durable consumer goods dipped 0.2%.
Year-on-year comparisons showed Eurozone industrial production remained stable in January, performing better than the European Union’s slight 0.2% decline. This stability marks an improvement over December’s annual drop of 1.5% and exceeded analysts’ predictions of a 0.9% contraction.
Across member states, Lithuania led with a robust 4.6% monthly growth, followed by Portugal at 3.7% and Austria at 3.3%. Malta experienced the sharpest decline at 12.9%, with Denmark and Slovakia following at 10.6% and 7.3% respectively.
European Energy & Industrial Sector Struggles
The energy sector faced ongoing challenges throughout Europe. Production decreased by 1.2% month-over-month and 1.6% year-over-year in the eurozone. EU-wide energy output fell 2% compared to December and 2.1% from last January.
German manufacturing shows signs of potential recovery after two difficult years marked by high energy costs and Chinese competition. However, analysts note that German manufacturing orders decreased 7% in January, suggesting continued vulnerability.
The European steel industry reflects broader uncertainty about sustained growth. EUROFER recently lowered its 2025 forecast for EU steel consumption growth to 2.2% from 3.8%. This adjustment acknowledges persistent challenges including high energy costs, global economic instability, and increasing import competition.
Despite January’s positive data, Eurozone industrial production remains approximately 3% below 2021 levels, highlighting the long road ahead for complete industrial recovery.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief