Eurozone Corporate Lending Growth Slows

European Central Bank data showed that lending to Eurozone companies slowed last month as new credit flows stalled as the bloc returned to recession and banks tightened access to credit.

Growth in lending to non-financial firms in the 19-nation euro zone slowed to 7% in January from 7.1% the month before, a relatively high level not far from its 10-year high of 7.4% in May.

However, the monthly flow of credit to companies was minus 0.2 billion euros, as small increases in the bloc’s largest countries – Germany, France and Italy – were offset by declines elsewhere, including Spain and the Netherlands.

Household lending growth slowed to 3% from 3.1% in the previous month, generally stable since April.

The annual growth rate for the M3 Money Supply gauge, which mostly reflects the ECB’s bumper bond purchases, increased to 12.5% from 12.4%the previous month, in line with market expectations.