business growth — business growth — The information and communication sector has emerged as a key driver in the recent surge of EU business registrations, which saw a 4.0 per cent increase in the third quarter of 2025, according to Eurostat. This growth reflects a broader positive trend across various sectors, albeit alongside a notable uptick in bankruptcy declarations.
Business growth: Sectoral Growth Insights
The latest data reveals that the information and communication sector experienced the highest growth, registering a 6.0 per cent increase in new business formations. This is indicative of the ongoing digital transformation and the demand for technological solutions across the continent. Following closely was the construction sector, which grew by 5.9 per cent, and the transport sector, which saw an increase of 5.5 per cent.
Bankruptcy Trends Amidst Growth
While the overall number of business registrations climbed, the rise in bankruptcy declarations presents a more complex picture. In the third quarter of 2025, bankruptcy filings increased by 4.4 per cent compared to the previous quarter, with significant variations noted across sectors. The accommodation and food services sector faced the steepest rise in bankruptcies, soaring by 20.7 per cent. This could be attributed to ongoing challenges in the hospitality industry post-pandemic.
Mixed Outcomes Across Industries
The transport sector also reported a worrying increase in bankruptcies, climbing 18.7 per cent. Financial services weren’t spared, with a 14.1 per cent rise in bankruptcy declarations. These figures suggest that while new businesses are being established, certain industries are struggling to remain viable, highlighting a potential disconnect between registration and sustainability.
Resilience in Information and Communication
Interestingly, the information and communication sector bucked the trend of rising bankruptcies, with a decrease of 4.8 per cent in filings. This resilience may indicate a robust demand for digital services and innovations that continue to thrive even in challenging economic climates. In contrast, the construction industry saw a slight decline in bankruptcies of 3.1 per cent, while the industrial sector reported a minimal drop of 0.1 per cent.
Future Implications for Investors
For investors and business analysts, these figures present a mixed bag of opportunities and risks. The strong growth in business registrations, particularly in the information and communication sector, may signal a ripe environment for investment. However, the concurrent rise in bankruptcies raises questions about the sustainability of many new ventures. Observing these trends will be crucial for understanding the future landscape of the EU business environment.
Conclusion
As the EU navigates its post-pandemic recovery, the data from Eurostat serves as a critical indicator of business dynamics. The contrasting trends in business registrations and bankruptcies highlight both the opportunities presented by emerging sectors and the challenges faced by established industries. Stakeholders will need to keep a close eye on these developments to gauge the true health of the EU economy.
