While EU GDP maintained its steady growth in Q2 2024 of around 0.2%, in line with its development since Q1 2023, EU production in services pulled back from a historic high in June 2024, followed by a decline in industrial production and only a slight rebound in retail trade in July 2024. Despite its downward turn, EU production in services remained significantly above its 2021 level, while industrial production and retail trade remain subdued.
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A closer look at month-on-month variations in the industrial sector reveals that the 0.1% decrease in July 2024 offset the equivalent increase in the previous month and confirmed a slightly negative trend established since the beginning of 2023. This contributed to year-on-year decline in the sector by 1.7% in July 2024, which was, however, lower than the 3.5% decrease recorded in June.
Conversely, EU retail trade, showed a slight month-on-month increase of 0.2% in July 2024, thereby confirming a relatively stable position since the beginning of 2024, with slight drops alternating moderate month-on-month increases. Broader sectoral fluctuations resulted in the 0.4% year-on-year growth in July 2024.
Against the months-long stagnation in industry and retail trade, and a recent backdrop in services, EU annual inflation reached 2.8% in July. In the euro area, for which August data are now available, the inflation rate fell to 2.2%, its lowest level since August 202.
EU economic sentiment further improved in August 2024, substantiating the positive trend established since September 2023.
More information:
Eurostat
www.ec.europa.eu