A view exhibits the skyline of Frankfurt, as individuals collect, in Germany, July 5, 2022. REUTERS/Kai Pfaffenbach
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Aug 26 (Reuters) – Lending to euro zone firms continued to surge in July, beating expectations for a slowdown on account of rising recession fears and plans by lenders to tighten entry to contemporary credit score, European Central Financial institution information confirmed.
Lending to companies within the 19-country euro space expanded by 7.7% in July after 6.9% a month earlier, whereas credit score progress to households slipped to 4.5% from 4.6%, contemporary information confirmed on Friday.
Banks that tightened entry to credit score already within the second quarter stated they had been more likely to be much more cautious within the present quarter, as excessive gasoline costs and conflict in Ukraine deplete financial savings and sap confidence.
This has raised fears that the ECB’s fee hikes — began with a 50 foundation level improve in July and set to proceed on Sept. 8 — may exacerbate the downturn.
Progress within the M3 measure of cash circulating within the euro zone, in the meantime, eased to five.5% from 5.7%, partly a mirrored image of the top of ECB cash printing. M3 progress was slightly below expectations for five.6% progress.
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Reporting by Balazs Koranyi; Enhancing by Jacqueline Wong
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