January Sees Eurozone Industrial Contraction; Surging Energy Expenses Dim Recovery Prospects

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Euro Zone Industry Shrinks in January; Energy Costs Surge, Recovery Hopes Fade

China solar installations to plunge in 2026 as policy shift hits revenues, industry body warns. (File/Reuters)

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Firstpost•13-03-2026, 16:34

Euro Zone Industry Shrinks in January; Energy Costs Surge, Recovery Hopes Fade

•Eurostat data shows Eurozone industrial output fell 1.5% month-on-month in January 2026, sharply missing growth forecasts.
•Production also declined 1.2% year-on-year, highlighting persistent weakness and a long slump in the manufacturing sector.
•Recovery hopes for 2026 are now threatened by surging energy prices, with oil up two-thirds and natural gas 80% due to the U.S.-led war in Iran.
•The energy shock means higher production costs for manufacturers and weaker consumer demand, impacting the import-dependent region.
•Germany, the euro zone’s largest economy, is particularly affected, with industrial output 9% below its 2021 level.

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Representational image (Image: News18)

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