HomeEconomyBusiness credit continues to slow on rising rates and recession fears

Business credit continues to slow on rising rates and recession fears

It fell from 8.3% in November to 6.3% in December according to figures from the European Central Bank.

Commercial loan growth in the euro zone slowed in December for the second month in a row, ending the biggest rise in loans in more than a decade.

In doubt, rising interest rates and fears of a possible recession appear to be setting in, European Central Bank (ECB) data released on Friday shows.

Decrease in loans granted to households as well

Commercial loan growth rose to 6.3% in December from 8.3% in November, while household credit growth slowed to 3.8% from 4.1%.

The monthly flow of corporate loans fell sharply in December to -16 billion euros, compared to -4 billion euros a month earlier.

The annual growth rate of the M3 money supply, which reflects the cash circulating in the eurozone economy, slowed to 4.1% from 4.8%, well below the Reuters consensus, which gave 4.6%.

Author: CO with Reuters
Source: BFM TV

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