EU investment levels fall by 1.9 per cent as economic activity cools
The European Union recorded a 1.9 per cent decrease in gross fixed capital formation during 2024 compared with the previous year, according to figures released by Eurostat.
This figure serves as a vital component of gross domestic product, as it tracks the level of investment made into assets such as buildings, machinery, and research and development.
The downturn was felt most acutely in the agriculture, forestry and fishery sector, which saw the largest decline of 7.6 per cent.
Investment in information and communication also experienced a significant contraction, falling by 5.6 per cent over the course of the year.
The real estate activities sector followed a similar downward trajectory, with capital formation decreasing by 4.3 per cent.
A decline of 3.1 per cent was registered for industry, reflecting a broader cooling of investment in hardware and equipment.
The category covering professional, scientific, technical, administrative, and support service activities saw a reduction of 1.7 per cent in capital asset investment.
Despite the overall negative trend, several sectors managed to record a growth in their investment in assets.
The highest increase of 4.3 per cent was found in public administration, defence, education, human health and social work activities.
Financial and insurance activities also showed resilience in the face of the downturn, posting a rise of 3.6 per cent in fixed capital investment.
The construction sector saw a more modest improvement, with its investment levels edging up by 0.9 per cent.