Company loan growth in the Eurozone slowed to 4.2% in August. The growth rate, which was 4.4% in July, slowed down, while household loans remained at 3.1%, and M3 money supply increased by 3.5%.
Following the European Central Bank's (ECB) interest rate hikes this year, the growth rate of loan volume provided by Eurozone banks to companies slowed slightly in August, while the increase in money supply continued.
The ECB released data on loans provided to companies and households for August.
According to the data, loans provided to non-financial corporations grew by 4.2% in August compared to the same period last year. This loan growth had reached its highest level in 3 years in July, with an annual increase of 4.4%.
In the same period, the growth rate of loans provided to households remained at the 3.1% level seen in July, also in August. This rate continues to be the highest recorded since the beginning of 2023.
On the other hand, the broadest measure of money supply, M3, in the Eurozone, recorded an annual growth of 3.5% in August.
The M3 money supply, which increased by 3.4% in July and met analysts' expectations in August, is considered a leading indicator for future economic growth and inflation trends in the region.
The ECB, concerned about rising energy prices due to the war situation in Iran leading to a general inflation wave, increased its deposit rate twice this year, from 2% to 2.50%.
