ECB Says Loans to Firms, M3 Money Supply Rose in January

Lending to firms picked up at the start of the year, data from the European Central Bank showed Tuesday.

Lending to firms grew by 3.4% on the year in January after growing 3.1% in December. Lending to households rose 2.9% on the year in January, matching the pace set the previous month.

The ECB’s key indicator of the money supply, M3, grew by 4.6% on year, in line with both the previous month and the rate predicted by analysts polled by The Wall Street Journal. The three-month average stood at 4.7% versus 4.8% predicted in the analysts’ survey.

The eurozone economy is heavily dependent on bank lending, so economists watch lending data closely as an indicator of the economy’s health.
Source: Dow Jones