Eurozone industrial production on the rise

Bert Colijn ING Economic and Financial Analysis

November’s robust 0.7% gain marks the third consecutive rise in production. While the coming months may disappoint, the industrial outlook is improving with investments set to lift production over the course of the year.

Industrial production experienced a wild ride in 2025. First, it saw a significant boost from the lacklustre levels seen in late 2024 due to American frontloading of European products. After that, production petered out somewhat as American frontloading ended, but now it looks like there’s new life to the eurozone industrial recovery.

With increases in September, October and November, production now stands at the highest level in two-and-a-half years, not counting the bumper month of March when American frontloading peaked.

Getting a good sense of direction for production remains tough in the short run when it comes to industry. With more domestic investment expected, production should increase, but the question is whether we are already seeing a meaningful liftoff. The growth in November was mainly driven by capital goods production, which is now 3.6% higher than a year ago. Most large eurozone economies have seen growth in recent months.

At the same time, the manufacturing PMI has shown weakness, moving from 50.7 in August to 48.8 in December on a steady declining trend. This indicates that while optimism about the coming year remains among manufacturers, the question is whether we’ll see a continued rebound in production in the months ahead.

It may be a volatile ride, but the eurozone industry does seem to be showing more signs of life as investment plans are translated into action.

Read the original analysis: Eurozone industrial production on the rise

Author

Bert Colijn

ING Economic and Financial Analysis

Bert Colijn is a Senior Eurozone Economist at ING. He joined the firm in July 2015 and covers the global economy with a specific focus on the Eurozone.

GBP/USD bounces off lows, back above 1.3200

After bottoming out near 1.3160, GBP/USD manages to regain a bit of shine and reclaim the 1.3200 mark and beyond at the end of the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay for now.

EUR/USD looks consolidative around 1.1460

EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained.

Gold slips back to six-day lows, targets $4,100

Gold retreats for the third consecutive day on Friday, eroding gains seen in the first half of the week and approaching the key $4,100 mark per troy ounce. Indeed, the precious metal continues to face headwinds from the Fed's hawkish stance and renewed uncertainty surrounding the next round of US-Iran negotiations.

Solana extends correction despite ETF inflows, RWA adoption

Solana (SOL) price edges below $70 extending its losses for the fourth straight day this week. The institutional demand for Solana is building, with steady inflows so far this week and Morgan Stanley’s amended S-1 filing for a Solana-focused Exchange-Traded Fund.

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.