The European services sector experienced a slight cooling period in February 2026, with production dipping 0.3% across both the euro area and the broader European Union.
This modest monthly decline follows a stronger start to the year, where the euro area saw a robust 1.0% jump in January.
Despite the month-on-month slip, the long-term trend remains positive. According to the latest data from Eurostat, services production grew by 1.4% in the euro area and 1.3% in the EU compared to the same period last year.
A mixed bag for industry sectors
The February slowdown was largely driven by a sharp pullback in the Information and Communication sector, which slumped by 2.0% across the bloc. Accommodation and food services also faced headwinds, falling 0.6% as consumer spending showed signs of mid-winter fatigue.
However, the "knowledge economy" provided a vital buffer. Professional, scientific, and technical activities grew by 0.5% in the euro area and a solid 1.0% in the EU, suggesting sustained demand for high-value business services.
|
Sector |
Euro Area (MoM) |
EU (MoM) |
|
Transportation & Storage |
+0.2% |
-0.3% |
|
Accommodation & Food |
-0.6% |
-0.6% |
|
Information & Communication |
-2.0% |
-2.0% |
|
Real Estate |
-0.4% |
-0.3% |
|
Professional & Scientific |
+0.5% |
+1.0% |
|
Administrative & Support |
0.0% |
+0.1% |
Regional winners and losers
The data reveals a stark geographical divide in economic performance. While Eastern Europe showed remarkable resilience, parts of Northern Europe and the Baltics struggled.
Top Performers: Bulgaria (+4.6%) and Hungary (+3.7%) led the monthly gains, while Hungary also secured the top spot for annual growth at 7.6%.
Sharpest Declines: Estonia reported a significant 16.3% drop in monthly production, followed by Luxembourg at -9.5%.
"While the monthly dip suggests a momentary pause in momentum, the annual figures confirm that the European services engine is still ticking upward, led primarily by a 4.0% year-on-year surge in the tech and communication fields within the euro area."
The annual outlook
Looking at the 12-month horizon, the Information and Communication sector remains the primary growth driver for the continent, up 4.0% in the euro area since February 2025. Conversely, the Accommodation and Food sector continues to lag, remaining the only major category to show an annual contraction (-0.8% in the euro area), highlighting ongoing challenges for the tourism and hospitality industry. Photo by Joseolgon, Wikimedia commons.