European Services Slow, but Poland Still Grows Well Above the EU Average

Europe's service sector lost some momentum in June 2026. Service production fell by 0.3% month on month in the euro area and by 0.2% in the European Union. Poland recorded a larger monthly decline of 0.9%, but its year-on-year performance remained much stronger: Polish service output was 5.0% higher than in June 2025, compared with 1.5% growth for the EU as a whole. Eurostat data show that June brought a correction after a strong May, when service production increased by 0.7% in both the euro area and the EU. The monthly slowdown does not change the broader picture of continued growth: compared with June 2025, service output was up 1.5% in both regions. Poland cools after an exceptionally strong May In Poland, service production fell 0.9% from May. The result follows a particularly strong increase of 3.0% in May, after gains of 0.5% in April and 0.2% in March. The annual comparison is much more favourable. In June, Polish service production was 5.0% higher than a year earlier — more than three times the EU average. Annual growth had reached 7.3% in May and 6.0% in April. Poland therefore remains among the countries with relatively strong service-sector growth, although the monthly data have become volatile. Information and communications remain Europe's strongest segment Information and communication services continued to lead growth. In June, production in the segment rose 0.7% month on month across the EU and 0.8% in the euro area. Compared with a year earlier, output increased 4.9% in the EU and 5.2% in the euro area. Transport and storage also grew on an annual basis, by 2.4% in the EU and 3.0% in the euro area. Accommodation and food services were weaker, with annual declines of 1.3% and 1.4% respectively. Real-estate services and administrative and support activities also remained under pressure. In June, real-estate service production fell 0.8% month on month in the EU, while administrative and support activities declined 0.4%. Germany remains below the European average Differences among the largest economies were significant. German service production fell 2.1% from May and was 0.6% lower than a year earlier. Italy recorded a 0.7% monthly decline and a 0.5% annual fall. Spain performed much better, with service output up 0.7% month on month and 5.0% year on year. France recorded a small monthly decline of 0.1%, while remaining 0.6% above the level of June 2025. Among the countries for which Eurostat had data, the largest monthly declines were recorded in Latvia, down 3.7%, Germany, down 2.1%, and Bulgaria, down 1.1%. Luxembourg, Portugal and Lithuania posted the strongest monthly gains. Poland remains in the stronger annual-growth group On a year-on-year basis, Greece recorded the highest service growth at 9.3%, followed by Slovenia at 8.5% and Estonia and Lithuania at 7.1% each. Poland's 5.0% increase placed it clearly above the EU average. At the other end of the ranking, Denmark recorded a 6.5% annual decline. Germany, Italy and Austria were also below their year-earlier levels. The data show an increasingly uneven picture across service categories. Digital and information-related services remain one of the main engines of European activity, while more traditional areas such as real estate, hospitality and administrative services are expanding much more slowly or contracting. Poland's service-production index, with 2021 equal to 100, stood at 134.4 in June, compared with 118.9 for the EU. The index is not a direct measure of sector size or its share in GDP, but it illustrates how much activity has changed relative to the base year. Source: ManagerPlus; Eurostat service-production data for June 2026, published 7 September 2026.