Cyprus industrial output bucks EU trend with July increase

Cyprus’ industrial production rebounded by 1.1 per cent in July 2026, contrasting with declines across the European Union and euro area, according to a report from Eurostat. The increase followed a 1.4 per cent decline in June, while Cyprus had also recorded a 0.4 per cent fall in May. On a monthly basis, Cyprus’ industrial output had risen by 1.6 per cent in March after falling 2.4 per cent in February, before remaining unchanged in April. The July increase placed Cyprus among the EU countries that recorded growth in industrial production during the month, although the rise was considerably smaller than the increases recorded in Luxembourg, Croatia and Ireland. Across the EU, industrial production fell by 0.3 per cent in July compared with June, following a 0.1 per cent decline in June. Euro area industrial production decreased by 0.1 per cent in July, also following a 0.1 per cent fall in June. The monthly figures show that Cyprus moved against the broader European trend in July, with production increasing while both the EU and euro area recorded contractions. In the euro area, production of intermediate goods increased by 0.3 per cent in July, while energy output rose by 0.9 per cent. Capital goods production increased by 0.5 per cent and durable consumer goods by 0.9 per cent, while non-durable consumer goods fell by 1.6 per cent. In the EU, production of intermediate goods decreased by 0.2 per cent, while energy output rose by 0.6 per cent. Capital goods increased by 0.3 per cent, while durable consumer goods also rose by 0.3 per cent. Production of non-durable consumer goods fell by 1.3 per cent. The largest monthly declines among member states were recorded in Denmark, where production fell by 4.2 per cent, followed by Bulgaria with a 2.9 per cent decline and Lithuania with a 2.4 per cent fall. The strongest monthly increases were recorded in Luxembourg at 4.5 per cent, Croatia at 3.9 per cent and Ireland at 2.6 per cent. Compared with July 2025, industrial production remained unchanged in the euro area and increased by 0.3 per cent across the EU. In the euro area, production of intermediate goods increased by 0.3 per cent year-on-year, while energy output rose by 4 per cent. Capital goods production increased by 1.7 per cent, while durable consumer goods fell by 1.2 per cent and non-durable consumer goods declined by 4.5 per cent. Across the EU, intermediate goods production increased by 0.4 per cent compared with July 2025, while energy output rose by 2.5 per cent. Capital goods recorded a 2.4 per cent increase, while durable consumer goods fell by 0.5 per cent and non-durable consumer goods declined by 3.2 per cent. The strongest annual increases were recorded in the Netherlands, where industrial production rose by 8.2 per cent, followed by Croatia at 7.2 per cent and Lithuania at 6.5 per cent. The largest annual declines were recorded in Bulgaria at 6.8 per cent, Romania at 6.3 per cent and Belgium at 5.6 per cent. The broader monthly data show that European industrial production had been growing through much of the first half of 2026 before weakening in June and July. Euro area production increased by 0.4 per cent in February, another 0.4 per cent in March, 0.3 per cent in April and 0.2 per cent in May, before declining by 0.1 per cent in both June and July. EU industrial production increased by 0.2 per cent in February, 0.9 per cent in March, 0.1 per cent in April and 0.3 per cent in May, followed by declines of 0.1 per cent in June and 0.3 per cent in July. Cyprus’ own monthly pattern was more volatile, with production falling by 2.4 per cent in February, rising by 1.6 per cent in March, remaining unchanged in April, falling by 0.4 per cent in May and dropping by 1.4 per cent in June before recovering in July. Elsewhere, Germany recorded a 1.5 per cent monthly decline in July after increasing by 0.3 per cent in June, while France fell by 0.4 per cent following a 0.1 per cent decline in June. Italy recorded a 0.7 per cent increase in July after a 1.1 per cent decline in June, while Spain increased by 0.6 per cent following a 0.6 per cent fall. Greece recorded a 2 per cent decline in July after a 0.1 per cent fall in June. Ireland, meanwhile, recorded a 2.6 per cent increase in July after a 0.6 per cent rise in June, extending a run of monthly increases following a 0.1 per cent contraction in May. Croatia recorded a 3.9 per cent increase in July after a particularly strong 5.2 per cent rise in June. The Netherlands also recorded growth in July, with industrial production increasing by 1.8 per cent following a 1.4 per cent decline in June. Luxembourg recorded a 4.5 per cent increase in July, following an exceptionally sharp 11.1 per cent contraction in June. Malta recorded a 1.9 per cent increase in July after a 0.2 per cent rise in June, while Poland increased by 0.6 per cent after falling 0.3 per cent in June. Portugal recorded a 0.3 per cent decline in July following a much sharper 4.3 per cent contraction in June. Austria’s industrial production was unchanged in July after rising by 1.6 per cent in June, the report showed. Latvia recorded a 0.1 per cent increase in July following a 0.9 per cent decline in June, while Estonia increased by 0.9 per cent after falling 2.2 per cent. Hungary recorded a 1.7 per cent increase in July following a 1.3 per cent decline in June, while the Czech Republic recorded a 1.1 per cent decline in July after a 1.4 per cent increase in June. Eurostat also reported that Lithuania’s industrial production fell by 2.4 per cent in July after rising by 1.8 per cent in June. Finally, Bulgaria recorded a 2.9 per cent decline in July following a 0.1 per cent fall in June, extending a reversal from the strong increases recorded earlier in the year.