Bank Lending in Euro Zone Shows Slight Expansion

FRANKFURT (Reuters) – Bank lending to the euro zone economy expanded slightly in August, continuing a slow rebound since the start of the year. This trend is possibly boosted by the prospect of steady European Central Bank rate cuts in the months ahead, according to ECB data released on Thursday.

• Bank credit to companies grew by 0.8% in August after a 0.6% increase in July.
• Credit to households expanded by 0.6% after a 0.5% increase in the previous month, with both figures trending upward nearly all year.

Additionally, the measure of money circulating in the euro area, which often leads economic activity, expanded by 2.9% in August, exceeding expectations of 2.6% in a Reuters poll of economists.