Loans to the private sector in the euro area, a gauge of economic health, fell year-on-year in August, but by slightly less than in July, the European Central Bank said today.
The volume of loans to private businesses and households declined by 1.5% in August compared with the same month last year, a slightly lower rate than the -1.6% recorded in July, the ECB said.
The long and deep financial crisis in the 18 countries which share the euro has squeezed lending, thus dampening economic activity.
The overall euro zone money supply grew 2% in August from a year earlier, higher than the 1.8% growth in July. The ECB regards M3 money supply as a barometer for future inflation.
