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Eurozone industrial production continues rebound in October

By Josh White

Date: Monday 15 Dec 2025

Eurozone industrial production continues rebound in October

(Sharecast News) - Eurozone industrial production recorded its strongest monthly increase in five months in October, according to fresh data released on Monday, adding to signs that the region's battered manufacturing sector was stabilising despite ongoing structural pressures.
Data from Eurostat showed output in the 20-nation bloc rose 0.8% month on month, accelerating from a 0.2% gain in September and marking the first back-to-back expansion since March.

On an annual basis, industrial production grew 2% in October, a five-month high and slightly above market expectations.

The improvement came as tentative signs of recovery in Germany, the bloc's largest economy, helped ease concerns over the impact of higher US tariffs on European manufacturers, even as eurozone exports continued to face a 15% levy on most goods shipped to the United States.

It was a broad-based rebound across sectors - durable consumer goods production rose 2.0% on the month, while non-durable goods increased 1.2% and energy output climbed 1.1%.

Capital goods production advanced 0.5% and intermediate goods rose 0.3%.

Across member states, Ireland posted the strongest monthly increase at 4.0%, reflecting its typically volatile multinational-heavy output, while Sweden recorded the sharpest decline, down 6.5%.

ING said the latest data underlined an improving cyclical picture for eurozone industry after years of strain from high energy prices following Russia's invasion of Ukraine, intensifying competition from China, a stronger euro and trade tensions.

"The battered eurozone industry is showing signs of life, with a growth acceleration in October," the bank said, adding that "despite structural headwinds, the industrial recovery is gaining momentum."

ING analysts cautioned that the upturn does not resolve deeper challenges facing the sector but said it supports a more balanced outlook for the economy.

"It would be a mistake to believe that, because of the current cyclical upturn, all the eurozone's industrial structural problems have been solved.

"But today's data confirms the ECB's belief that risks to the eurozone economy in the coming year are no longer skewed to the downside," it said.

The bank added that "will only reinforce the idea that no further rate cuts are needed," even if inflation temporarily undershoots due to lower energy prices, while noting that falling oil and gas costs, easing inventory pressures and planned German defence and infrastructure spending should help underpin manufacturing into 2026.

Reporting by Josh White for Sharecast.com.

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