Finance
Euro zone industrial output weak but skewed by Ireland, data shows
Published by Global Banking & Finance Review®
Posted on November 13, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 13, 2025
2 min readLast updated: January 21, 2026
Euro zone industrial output rose 0.2% in September, impacted by Ireland's volatility, with Germany and Italy showing strong growth.
FRANKFURT (Reuters) -Euro zone industrial production rose far less in September than economists had predicted, though the big economies fared well and the shortfall was due to volatility among big foreign companies based in Ireland for tax reasons.
Industrial production rose 0.2% on the month, well below expectations for a 0.7% rise in a Reuters poll of economists but an improvement on the 1.1% drop a month earlier.
Compared to a year earlier, output was up 1.2%, in line with the previous month but well below expectations for 2.1% in a Reuters poll.
Germany, the currency bloc's powerhouse, outperformed the overall euro zone with a 1.9% monthly increase and Italy expanded by 2.8%. France and Spain also grew above average.
Output in Ireland, however, fell by 9.4% on the month, a large swing that is not unusual for the country, especially since the onset of U.S. tariffs, which have forced firms to frontload some sales.
Given the sheer scale of earnings of the large companies headquartered in Ireland, Irish output often distorts the euro zone data, including for GDP growth, and some economists now exclude it from their calculations.
(Reporting by Balazs KoranyiEditing by Gareth Jones)
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period. It is a key indicator of economic performance.
Economic volatility refers to the fluctuations in economic performance and indicators, such as GDP or industrial output. High volatility can indicate instability in the economy.
Foreign currency is any currency that is not the domestic currency of a country. It is used in international trade and transactions.
Economic growth is an increase in the production of goods and services in an economy over a period of time, typically measured as the percentage increase in real GDP.
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