European Union sectors are set for uneven growth in 2026, with technology outpacing others at 4.5% despite lagging the U.S. and China. Most industries will expand just 1-1.5%, though construction and staffing show the strongest gains from 2025 levels. The forecast comes from ING.

Manufacturing is forecast for a second year of growth, with high-tech subsectors like defense and AI driving gains. EU exporters have passed nearly all U.S. tariff costs to American buyers while shifting some production stateside. Construction is shifting from stagnation to growth, boosted by EU recovery funds and Germany's €500 billion infrastructure plan.

Consumer sectors face modest gains at best. Purchasing power is improving and inflation is dropping, but shoppers remain cautious after years of high prices. Food retail volumes grow slowly, while food service lags. Non-food retail may see a lift in electronics and furniture as pandemic-era overbuying fades.