Key insights
- Stifel expects a positive but choppy trend in EU industrial production through year-end. Eurozone PMI expanded in March, marking a 45-month high. Uncertainty from U.S. policy affecting global industrial economies and capital investment plans is cited. The firm believes the European industrial economy has likely bottomed, with policy pressure driving growth in European industrial and defense capacity. Limited negative influence on US equities due to uncertainty regarding US policy.
Stifel sees positive /choppy trend in EU industrial production through year-end
Investing.com -- European industrial production rose 0.4% month-over-month in February across both the EU21 and EU27, according to data from Eurostat analyzed by Stifel. The figure exceeded the consensus expectation of 0.3% growth.
Within the EU21, intermediate goods production increased 0.5%, capital goods rose 1.0%, and non-durable consumer goods climbed 2.6%. Energy production fell 2.1%, while durable consumer goods declined 1.3%.
Among major European economies, Germany's industrial production decreased 0.1% sequentially, France fell 0.8%, and Spain remained flat. Of 30 countries reporting data, 12 showed sequential increases, 17 posted decreases, and one was unchanged.
On a year-over-year basis, industrial production in the EU21 decreased 0.7%, while the EU27 declined 0.1%. Sixteen countries showed annual increases, 13 reported declines, and one remained unchanged.
The Eurozone PMI expanded in March, rising 0.8 points from February to 51.6, marking a 45-month high.
Stifel expects a positive but choppy trend in industrial production data for 2026, citing uncertainty from U.S. policy affecting global industrial economies and capital investment plans. The firm believes the European industrial economy has likely bottomed, with policy pressure driving growth in European industrial and defense capacity.