Business activity across the European Union weakened in the second quarter of 2026, with fewer new companies being registered and a marked rise in corporate
bankruptcies, according to figures released by Eurostat.
The number of business registrations fell by 0.5% between the first and second quarters, while bankruptcy declarations rose by 5.7%, pointing to growing pressure on companies despite continued activity in parts of the European economy.
The latest figures show a mixed picture across sectors, with some areas seeing a sharp decline in new business formation while others recorded significant increases.
Industry records the steepest decline in new registrations
Five of the EU's eight business sectors recorded fewer registrations during the quarter.
Industry suffered the sharpest fall, with registrations dropping by 3.6%. Accommodation and food services followed with a 3.4% decline, while education and social activities recorded a 3.2% fall.
The trend was reversed in information and communication, where registrations jumped by 8.8% — the strongest increase among the sectors monitored by Eurostat.
Construction also recorded modest growth, with registrations rising by 1.0%. Financial services were unchanged from the previous quarter.
The figures suggest that while traditional and consumer-facing parts of the economy remain under pressure, technology and communications continue to attract new business activity.
Bankruptcies rise sharply in education and social services
The increase in bankruptcies was considerably stronger than the decline in registrations.
Five of the eight sectors recorded a rise in bankruptcy declarations. Education and social activities saw the largest increase, at 21.1%, followed by transport, where bankruptcies climbed by 11.4%.
Financial services also recorded a significant rise, with bankruptcy declarations increasing by 6.8%.
There were, however, some sectors where bankruptcies declined. Accommodation and food services registered a 2.6% fall, while construction saw bankruptcies decrease by 1.7%. Trade recorded a smaller decline of 1.2%.
Taken together, the figures point to a business environment in which new company formation is losing momentum while financial difficulties are becoming more pronounced in several parts of the economy.
The Eurostat data cover quarterly developments in business registrations and bankruptcy declarations across the EU and provide an early indication of changes in entrepreneurial activity and corporate distress. Photo by Phil Whitehouse, Wikimedia commons.