Bank Lending in Euro Zone Expands Slightly in August

FRANKFURT (Reuters) – Bank lending to the euro zone economy expanded slightly in August, continuing a slow rebound since the start of the year, 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, following a 0.6% increase in July, while credit to households expanded by 0.6%, up from 0.5% in the previous month. Both figures have been trending upward nearly all year.

The measure of money circulating in the euro area, often seen as a leading indicator of economic activity, expanded by 2.9% in August, surpassing expectations of 2.6% in a Reuters poll of economists.