Recent statistics on Eurostat indicated a rather sporadic but quite robust trend in business activity in the European Union in the fourth quarter of 2025. Incorporations of new businesses and bankruptcy filings were also growing, meaning that there was additional economic churning in the industries. Registrations of new businesses increased by 0.5% in the fourth quarter of 2025 as compared to the third quarter. Even though the growth is small, it is an indicator that, despite the prevailing economic uncertainty, activity among the entrepreneurs is not decreasing. At the same time, the volume of bankruptcy announcements grew even faster, by 2.5 percent quarter-to-quarter, which means that the business of certain firms continues to be under a budget. Differences are quite prominent within sectoral trends.
The number of registered businesses had grown in five out of the eight sectors that were being monitored. The best growth was registered in the information and communication sector, whereby the number of new companies formed shot up by 6.4%. Industry was next with a strong 4.9% growth, and at the same time, accommodation and food services registered a lower growth of 1.3%. Registrations were, however, reporting a slight fall in trade (-0.3%), construction (-0.1%), and transport (-0.1%), indicating dissimilar momentum in all of the business economy.
The bankruptcy statistics create a much more diversified picture, but with larger expansions. There was an increase in insolvency declarations in six of the eight sectors. There was the highest increase in accommodation and food services (8.6%), which shows a constant cost and demand pressure in the hospitality segment. The information and communication sector had the largest number of bankruptcies at 7.9 percent, and transport registered 5.6 percent. In comparison, trade (-3.4%) and finance (-0.7%) have shown small improvements. Altogether, recent data indicate that the business environment of the EU is evolving and volatile, at the same time, with new companies being formed regularly, and with the increasing insolvency rates in some of the most stable sectors.