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Euro Area Services Output Picks Up In April As Transport And Professional Services Lead Gains

Services production in the euro area rose 0.7% in April 2026 from the previous month, while output across the European Union increased 0.3%, according to Eurostat.

The figures follow gains of 0.1% in the euro area and 0.4% in the EU in March. Compared with April 2025, services production increased 1.8% in both regions.

Transport And Professional Services Lead Growth

In the euro area, transportation and storage recorded the strongest monthly increase, rising 1.5%. Professional, scientific and technical activities followed with a 1.3% gain, while information and communication increased 0.6% and accommodation and food services edged up 0.1%.

Real estate activities declined 0.2%, while administrative and support services fell 0.3%.

European Union Shows Similar Pattern

Across the EU, transportation and storage increased 1.0%, while professional, scientific and technical activities rose 1.1%. Accommodation and food services declined 0.1%, real estate activities fell 0.6%, and administrative and support services slipped 0.2%.

Member States Show Mixed Results

Belgium recorded the strongest monthly increase in services production at 2.1%, followed by Greece at 1.6% and Bulgaria at 1.5%. Hungary posted the sharpest decline at 13.9%, ahead of Denmark at 3.2% and the Netherlands at 1.9%.

On an annual basis, information and communication recorded the strongest growth in the euro area, rising 5.9%.

Among EU member states, Bulgaria led annual growth with a 9.3% increase, followed by Estonia at 6.4% and Poland at 6.0%. Romania recorded the steepest annual decline at 5.8%, followed by Denmark at 5.3% and Luxembourg at 2.9%.

Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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