Lending to euro zone firms fell again in April while loans to households increased, data showed today.
European Central Bank figures showed corporate borrowing fell €14 billion in April compared to March, and was 2.6 per cent weaker over the year, offset by a €17 billion increase in lending to households.
This helped loans to the private sector overall to a 0.1 per cent increase over the year, compared to a drop of 0.2 per cent in March.
M3 money supply, a measure of cash readily available to spend which the ECB sees as a leading indicator for inflation, fell 0.1 per cent on an annual basis, against expectations of a 0.2 percent fall.
At -0.2 per cent, the three-month moving average of M3 growth remains well below the ECB's reference rate of 4.5 per cent, above which the bank sees dangers to medium-term price stability.
Reuters