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