Lending to European Businesses Fell in June: ECB
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Loans to European companies fell in June – a sign that economic expansion remains tepid,
according to data issued by the European Central Bank in July.
Growth in so-called M3, a measure of bank deposits, short-term debt and other elements of the money supply, rose at an annual rate of 0.2 percent in June after declining 0.1 percent in May.
The average growth for the last three months was zero, the E.C.B. said.
Loans to European companies fell in June – a sign that economic expansion remains tepid,
according to data issued by the European Central Bank in July.
Growth in so-called M3, a measure of bank deposits, short-term debt and other elements of the money supply, rose at an annual rate of 0.2 percent in June after declining 0.1 percent in May.
The average growth for the last three months was zero, the E.C.B. said.
Loans to companies, excluding banks and other financial corporations, fell at an annual rate of 1.9 percent in June after declining 2.1 percent in May.
“There are still no clear indications of a turnaround,” economists at Commerzbank said in a note Tuesday, reported in this piece from the New York Times.
Offsetting the decline in business credit were loans to consumers,
which rose 2.8 percent in June after rising 2.6 percent in May, the E.C.B. said.
The E.C.B. watches credit growth closely in setting monetary policy,
and the new data supports expectations that the bank will not raise official interest rates until next year.
