services output — Eurozone services output dipped in November 2025, reflecting broader challenges in the transport and storage sectors, according to Eurostat. The seasonally adjusted services production fell by 0.6 per cent in the euro area and 0.5 per cent across the European Union, marking a decline following a modest growth of 0.1 per cent in October.
Despite the monthly downturn, the annual comparison shows a slight increase, with services production up by 0.3 per cent in the euro area and 0.2 per cent in the EU compared to November 2024. Notably, the transport and storage sector experienced a significant decline of 0.7 per cent, along with professional, scientific, and technical activities, which also fell by the same margin.
In November, administrative and support services decreased by 0.6 per cent, while real estate activities saw a reduction of 0.3 per cent. The information and communication sectors alongside accommodation and food services reported minor declines of 0.1 per cent.
Interestingly, while many areas faced challenges, Cyprus’s service sector showed a positive trend as business confidence grew in January 2026. The Economics Research Centre of the University of Cyprus noted that optimism in services nearly offset a minor decline in the broader Economic Sentiment Indicator, which was impacted by the retail and construction sectors.
Expectations for turnover improved, signifying a recovery after two months of decline. Meanwhile, capacity utilisation in accommodation and food services remained stable, reaching the highest levels since the pandemic began.
Across the EU, the transportation and storage sector experienced the most significant annual decline, plummeting by 1.6 per cent compared to the previous year. However, the information and communication industry demonstrated resilience, with annual production rising by 3.2 per cent in the euro area and 3.0 per cent in the EU.
Performance varied widely among member states. Greece faced the largest monthly decrease at 6.0 per cent, followed by Denmark at 5.1 per cent and Hungary at 2.0 per cent. Conversely, Bulgaria reported the highest monthly growth at 2.9 per cent, with Romania and Slovakia also showing increases of 2.3 per cent and 2.1 per cent, respectively.
Annual figures underscored further regional disparities, with Bulgaria experiencing a remarkable 9.9 per cent increase in services production while Denmark suffered a stark 13.0 per cent contraction. Despite the positive outlook for service turnover in Cyprus, expectations regarding employment were adjusted downwards, though they remained generally optimistic.
The January survey also highlighted near-full utilisation of productive capacity in construction, noting that labour shortages have constrained activities for many firms over the past several months. Consumer confidence in Cyprus remained robust, retaining the high levels recorded in December 2025, even as expectations for the general economic situation slightly weakened.
