By Hans Bentzien
FRANKFURT (Dow Jones)–The dynamics of lending to companies in the euro area slowed in January. According to a statement from the European Central Bank (ECB), lending to non-financial companies rose at an annual rate of 0.2 percent, after rising 0.5 percent in December. Compared to the previous month, lending fell by 12 (December: plus 17) billion euros.
The volume of loans to private households fell at an annual rate of 0.1 (plus 0.1) percent. The volume of loans for house purchases also fell by 0.1 (plus 0.2) percent, while the volume of consumer loans increased by 2.8 (2.7) percent.
Total lending in the euro area fell by 0.4 (minus 0.5) percent, with lending to private individuals increasing by 0.4 (0.4) percent, but lending to the state by 2.5 (minus 2.5) percent. percent fell.
The money supply M3, whose most important balance sheet counterpart is loans, rose in January at an annual rate of 0.1 (0.2) percent. An increase of 0.3 percent was expected. The annual rate of change in the narrower money supply M1 fell to minus 8.6 (minus 8.5) percent. In addition to the cash in circulation, M1 includes sight deposits at banks.
Contact the author: hans.bentzien.de@dowjones.com
DJG/hab/cbr
(END) Dow Jones Newswires
February 27, 2024 4:13 AM ET (09:13 GMT)
2024-02-27 09:30:33
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