Seasonally adjusted services production decreased by 0.3 per cent in both the euro area and the European Union during February, according to a report from Eurostat.

This slight contraction follows a period of growth in January 12, 2026, when production rose by 1.0 per cent in the euro area and 0.4 per cent across the wider union.

Despite the monthly dip, the annual comparison reveals that services production increased by 1.4 per cent in the euro area and 1.3 per cent in the European Union compared to the same month last year.

Within the euro area, the transportation and storage sector managed a slight increase of 0.2 per cent on a monthly basis.

Conversely, accommodation and food services saw a reduction of 0.6 per cent, while real estate activities fell by 0.4 per cent.

The information and communication segment experienced the most significant monthly drop in the euro area, falling by 2.0 per cent.

On a more positive note, professional, scientific and technical activities grew by 0.5 per cent, while administrative and support services remained stable.

The broader European Union followed a similar trend, though transportation and storage saw a monthly decrease of 0.3 per cent in contrast to the euro area.

Professional and scientific activities in the union performed strongly with a 1.0 per cent monthly increase, while administrative services grew by 0.1 per cent.

Among individual member states, Estonia recorded the most severe monthly decline at 16.3 per cent, followed by Luxembourg at 9.5 per cent and Denmark at 3.0 per cent.

In terms of growth, Bulgaria posted the highest monthly increase at 4.6 per cent, with Hungary and Poland following at 3.7 per cent and 1.4 per cent respectively.

When looking at the year-on-year performance, the information and communication sector remains a primary driver, growing by 4.0 per cent in the euro area.

Professional and scientific services also showed strong annual momentum, increasing by 2.3 per cent in the euro area and 3.0 per cent across the union.

Accommodation and food services was the only major sector to record an annual decrease, falling by 0.8 per cent in the euro area.

Hungary led the annual rankings with a 7.6 per cent increase, while Bulgaria and Slovenia both recorded growth of 6.3 per cent.

Romania faced the largest annual contraction at 5.3 per cent, while Denmark and Lithuania also saw their output shrink compared to the previous year.