Eurozone business lending growth slows sharply in November

BANK lending to eurozone companies slowed in November, easing back from the sector’s biggest borrowing binge in over a decade as rising interest rates and a looming recession appear to be taking a toll, European Central Bank data showed on Thursday (Dec 29).

Lending to businesses in the 19-country euro area expanded by 8.4 per cent in November after an 8.9 per cent reading a month earlier while household credit growth slowed to 4.1 per cent from 4.2 per cent.

The monthly flow of loans to companies was also sharply lower at minus 1 billion euros after a 24 billion euro reading a month earlier.

Growth in the M3 measure of money circulating in the eurozone meanwhile slowed to 4.8 per cent from 5.1 per cent, coming below expectations for 5.0 per cent in a Reuters survey. REUTERS