Eurozone industrial production fell 1.5% month-on-month in January 2026, following a revised 0.6% decline in December and missing market expectations of a 0.6% increase. It was the sharpest monthly drop since April 2025, driven by declines across key sectors: non-durable consumer goods fell 6.0% (vs. 0.4% in December), capital goods dropped 2.3% (vs. -0.7%), durable consumer goods slipped 1.9% (vs. -0.1%), and intermediate goods fell 1.9% (vs. -0.2%). Energy output, however, rebounded 4.7% after two consecutive months of contraction. Among the Eurozone’s largest economies, output decreased in Germany (-1.3%), Italy (-0.6%) and Spain (-0.5%), but rose in France (0.5%) and was unchanged in the Netherlands (0.0%). On an annual basis, industrial production fell 1.2%, marking the first yearly decline in a year and falling short of analysts’ expectations for 1.4% growth.