Seasonally adjusted services production in the euro area rose by 0.4% in July 2026 compared with the previous month, while increasing by 0.3% across the broader European Union, according to first estimates released Wednesday by [Eurostat](https://ec.europa.eu/eurostat/product?code=4-07102026-ap), the statistical office of the European Union.
The modest expansion marks a recovery from June 2026, when services output contracted by 0.3% in both the euro zone and the EU. On an annual basis, services production increased by 1.5% in both regions compared with July 2025.
Sectoral performance across the euro area showed broad gains, led by professional, scientific, and technical activities, which rose by 1.1%. Real estate activities expanded by 0.7%, while accommodation and food services increased by 0.6%. Information and communication services rose by 0.4%, and administrative and support services edged up by 0.3%. The only major sector to register a decline in the euro area was transportation and storage, which contracted by 0.1%.
A similar pattern emerged across the entire EU. Professional, scientific, and technical activities grew by 1.0%, followed by 0.5% growth in both accommodation and food services and information and communication. Real estate activities grew by 0.3%, and administrative and support services also rose by 0.3%. Transportation and storage dipped by 0.1% across the EU.
Performance among individual EU member states varied significantly. The highest monthly increases in services production were recorded in Luxembourg (+7.6%), Greece (+5.1%), and Sweden (+1.5%). Conversely, the sharpest monthly declines occurred in Hungary (-4.5%), Denmark (-3.1%), and Slovenia (-2.7%).
On a year-over-year basis, Greece recorded the strongest growth among reporting member states, with services output jumping 16.1% compared to July 2025. Slovakia (+8.7%) and Estonia (+8.0%) also posted substantial annual gains. The largest annual drops were reported in Hungary (-5.4%), Romania (-4.6%), and Denmark (-4.1%).
Analysis: Sectoral Resilience and Regional Divergence
The July recovery in European services production indicates moderate domestic demand resilience following June’s contraction. The strength in professional services and technical activities suggests continued corporate investment in specialized services, while steady growth in accommodation and food services points to ongoing consumer leisure spending during the peak summer travel season.
However, the divergence among member states highlights uneven economic momentum across the bloc. While Mediterranean and smaller economies like Greece, Luxembourg, and Slovakia experienced sharp growth, several Central and Northern European economies—notably Hungary and Denmark—faced persistent contraction in service sector activity. The continued sluggishness in transportation and storage also underscores ongoing adjustments in global logistics and regional freight volumes.
Sources
– [Eurostat News Releases](https://ec.europa.eu/eurostat/product?code=4-07102026-ap)
Source: Eurostat News Releases
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Story synopsis gathered from: Eurostat News Releases — source
