Seasonally adjusted services production in both the euro area and the European Union increased by 0.8 per cent in May 2026 compared with the previous month, according to a report from Eurostat.

The official statistical office of the European Union reported that the positive monthly performance followed growth recorded in April 2026, when services output rose by 0.7 per cent in the euro area and by 0.3 per cent across the wider bloc.

On an annual basis, services production expanded by 2.4 per cent in both the euro area and the European Union when compared with May 2025.

Across the single-currency area, real estate activities spearheaded the monthly growth in May 2026 with an increase of 2.1 per cent relative to April 2026.

The professional, scientific and technical activities sector in the euro area grew by 1.0 per cent during the same period.

Further positive contributions came from administrative and support services which rose by 0.6 per cent, alongside information and communication activities which picked up by 0.5 per cent.

The transportation and storage sector recorded a modest increase of 0.2 per cent, while accommodation and food services declined by 1.0 per cent in the euro area.

Across the broader European Union, real estate activities grew by 1.6 per cent, professional, scientific and technical activities gained 0.9 per cent, and information and communication rose by 0.6 per cent.

Administrative and support services in the European Union saw a 0.5 per cent expansion, transportation and storage ticked up by 0.2 per cent, whereas accommodation and food services dropped by 1.0 per cent.

Among member states for which data was available, Greece recorded the highest monthly increase in services production at 4.5 per cent, followed by Latvia at 3.8 per cent and Poland at 3.0 per cent.

In contrast, the largest monthly contractions were observed in Hungary, where output fell by 3.6 per cent, as well as Portugal with a 2.8 per cent drop and Denmark with a 1.3 per cent decline.

Looking at annual trends compared with May 2025, information and communication recorded the strongest growth in the euro area with a 4.6 per cent rise, closely followed by transportation and storage at 4.4 per cent.

Annual gains in the euro area were also noted in professional, scientific and technical activities at 2.5 per cent, real estate activities at 1.9 per cent, and administrative and support services at 0.5 per cent, whereas accommodation and food services contracted by 1.8 per cent.

For the entire European Union on a year-on-year basis, information and communication expanded by 4.7 per cent, transportation and storage rose by 3.1 per cent, and professional, scientific and technical activities climbed by 2.8 per cent.

European Union real estate activities and administrative support services recorded annual increases of 1.0 per cent and 0.6 per cent respectively, while accommodation and food services shrank by 1.8 per cent.

The highest annual expansions among reporting European Union member states were registered in Bulgaria at 8.1 per cent, Latvia at 7.9 per cent and Poland at 7.3 per cent.

Conversely, Denmark experienced a sharp annual decline of 14.0 per cent, alongside decreases in Hungary at 3.6 per cent and Romania at 1.4 per cent.

Although Cyprus was not included in the Eurostat dataset, domestic statistics compiled by the Cyprus Statistical Service (Cystat) demonstrate robust momentum across the island’s local services sectors.

During the fourth quarter of 2025, the island’s Turnover Value Index for accommodation and food service activities surged by 9.5 per cent compared to the corresponding period of 2024.

Real estate activities in Cyprus achieved a growth rate of 5.7 per cent during the final three months of 2025.

Cystat data further revealed that administrative and support service activities grew by 4.1 per cent relative to the fourth quarter of the prior year.

Turnover in professional, scientific and technical activities observed a 3.4 per cent increase as 2025 drew to a close.

The information and communication sector registered a 2.1 per cent index rise in the fourth quarter of 2025, while transport and storage activities posted a 1.4 per cent gain.

Over the full annual period from January 1, 2025, to December 31, 2025, broad-based expansion was recorded across all monitored service categories in Cyprus.

Accommodation and food service activities maintained an annual growth rate of 9.5 per cent throughout 2025.

Administrative and support service activities showed strong full-year momentum with a 7.4 per cent rise in turnover.

Professional, scientific and technical activities climbed by 4.6 per cent across the twelve-month period, while information and communication recorded an annual increase of 4.3 per cent.

Transport and storage activities posted a year-on-year increase of 2.8 per cent for 2025.

Real estate activities completed the annual performance overview with a modest growth of 0.4 per cent for the entire year.