Annual growth in adjusted loans to eurozone non-financial companies slowed to 4.2% in August from 4.4% in July, European Central Bank data showed. July's rate had been the strongest since the middle of 2023. Adjusted household-loan growth was unchanged at 3.1%, maintaining its fastest pace since early 2023.
The figures cover lending adjusted for loan transfers and notional cash pooling. Growth in adjusted loans to the whole private sector increased to 4.3% from 4.1%.
MONEY GROWTH EDGED HIGHER
Annual growth in the broad monetary aggregate M3 rose to 3.5% in August from 3.4% in July. The narrower M1 measure, which includes currency and overnight deposits, slowed to 2.9% from 3.1%. Claims on the private sector contributed 3.4 percentage points to M3 growth, up from 3.2 percentage points a month earlier.
Household credit remained steadier than lending to companies. Annual growth in deposits placed by households slowed to 2.4% from 2.6%, while growth in deposits of non-financial corporations slowed to 4.7% from 5.3%.
BANKS FACE A CHANGING RATE BACKDROP
The lending release followed the ECB's September increase in its three policy rates by 25 basis points. That decision raised the deposit-facility rate to 2.50%, with officials responding to renewed inflation pressure.