Growth in business lending in the eurozone slowed slightly in August

Growth in lending to the eurozone business sector slowed slightly in August but remained at a relatively high level, while the pace of household lending stayed unchanged, according to data released by the European Central Bank (ECB) on Friday.

According to ECB data, loans issued to eurozone businesses grew by 4.2% year-on-year, following growth of 4.4% recorded in July. July's figure was the highest since mid-2023.

Household lending growth held steady at 3.1% in August, matching the highest level since early 2023. The annual growth rate of the broad money supply in circulation in the eurozone, M3, accelerated to 3.5% in August, compared with 3.4% in July. The figure matched the expectations of economists polled by Reuters. European Central Bank

M3, one of the key indicators of money circulation in the economy, is often used as a possible signal of future economic activity.