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Italy’s PPI fell -1.4% y/y in December, down from -0.2% previously, signalling a renewed deepening of producer-level deflation. On a monthly basis, PPI dropped -0.7% m/m after a +1.0% rise prior, indicating the earlier rebound reversed quickly. The data reinforce a softer inflation pipeline into early 2026, keeping pressure on pricing power and supporting the broader disinflation narrative in the euro area.

The euro area unemployment rate fell to 6.2% in December, beating expectations of 6.3% and improving from 6.3% previously. The decline reinforces a resilient labor-market backdrop into year-end, helping support household income and consumption even as growth and inflation dynamics remain mixed across the bloc.

Eurozone GDP rose 0.3% q/q in Q4, matching the prior 0.3% and beating expectations of 0.2%, signalling steadier momentum than markets anticipated. On an annual basis, GDP grew 1.3% y/y, above the 1.2% forecast but slightly below the prior 1.4%, suggesting growth remains resilient even as the year-on-year pace cooled modestly. The mix supports a “soft-landing” narrative, while keeping attention on whether disinflation and labor-market stability can sustain activity into early 2026.

Italy’s unemployment rate came in at 5.6% in December, beating expectations of 5.8% and matching the prior 5.6%. The steady, lower-than-expected print suggests the labor market remains relatively resilient, helping cushion domestic demand even as broader euro-area growth signals stay mixed.

Spain’s current account balance slipped to a €0.21B surplus in November, down from €7.18B previously. The sharp narrowing suggests a weaker external contribution for the month—either from softer services/tourism inflows, a wider trade gap, or income/transfer dynamics—keeping attention on whether the surplus normalises further into winter.

Italy’s economy grew 0.3% q/q in Q4, beating expectations of 0.2% and improving from 0.1% previously—signalling better sequential momentum into year-end. On an annual basis, GDP rose 0.8% y/y, well above the 0.5% forecast and stronger than the prior 0.6%, suggesting Italy outperformed consensus and provided a modest positive offset to broader euro-area growth concerns.

Germany’s economy grew 0.3% q/q in Q4, beating expectations of 0.2% and improving from 0.0% previously—signalling a clearer pickup in sequential momentum into year-end. On an annual basis, GDP rose 0.4% y/y, also above the 0.3% forecast and slightly stronger than the prior 0.3%, reinforcing that growth surprised modestly to the upside and may ease near-term recession fears.

Germany’s January unemployment rate held at 6.3% (in line with 6.3% expected and 6.3% prior), while the unemployment change printed 0K, beating expectations for a +4K rise (prior +3K). The seasonally adjusted unemployed total was essentially unchanged at 2.976M (prior 2.977M), pointing to a stable labor-market backdrop at the start of the year, even as the non-seasonally adjusted count stood higher at 3.085M.

Switzerland’s official reserve assets rose to CHF 852.6B in December, up slightly from CHF 852.4B previously. The marginal increase suggests limited month-to-month change, but the overall level remains very large—keeping attention on the SNB’s FX balance-sheet footprint and how it manages franc strength into 2026.

Spain’s Q4 GDP rose 0.8% q/q, beating expectations of 0.6% (prior 0.6%), while GDP growth eased to 2.6% y/y versus 2.7% expected (prior 2.8%). On inflation, CPI cooled to 2.4% y/y (in line with 2.4% expected; prior 2.9%) and HICP slowed to 2.5% y/y (slightly above 2.4% expected; prior 3.0%). Monthly prints were negative—CPI -0.4% m/m (vs -0.3% expected; prior 0.3%) and HICP -0.7% m/m (vs -0.8% expected; prior 0.3%)—while core CPI held at 2.6% y/y (in line). Overall, the data show stronger near-term activity but disinflation continuing, keeping the macro mix broadly supportive for easier policy expectations.

Switzerland’s KOF Leading Indicator fell to 102.5 in January, below expectations of 103.1 and down from 103.6 previously. While the index remains above the 100 long-term average—still consistent with expansion—the decline signals slower forward momentum and a slightly softer near-term growth signal for the Swiss economy.

France’s producer price index fell -2.00% y/y in December (prior -1.50%), deepening producer-level deflation and reinforcing disinflation pressure in the supply chain. On a monthly basis, PPI rose 0.2% m/m, but that was a sharp cooling from the prior +2.8%, suggesting the earlier surge was temporary and price momentum eased heading into early 2026.