# Euro zone lending takes another hit in May
Published: 2023-06-28
Category: News
Category URL: https://companiesdigest.com/category/news/
Meta Title: Euro Zone Bank Lending Slows Further in May
Meta Description: Euro zone lending growth dips as interest rates rise and manufacturing sector faces recession, impacting businesses and households in 20-nation currency bloc.
URL: https://companiesdigest.com/euro-zone-lending-takes-another-hit-in-may/

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(Reuters) – Euro zone bank lending slowed further in May, dragged down by higher interest rates and a recession in the bloc’s vast manufacturing sector, European Central Bank data showed on Wednesday.

The ECB has been raising interest rates at the fastest pace on record over the past year to combat stubborn inflation, weakening demand for bank credit and slowing everything from the housing market to construction and consumer spending.

Lending growth to businesses in the 20-nation currency bloc dipped to 4.0% in May from 4.6% a month earlier while household credit growth slowed to 2.1% from 2.5%.

Growth in the M3 measure of money circulating in the euro zone meanwhile fell to 1.4% from 1.9%, coming just below expectations for 1.5% in a Reuters survey.

(Reporting by Balazs Koranyi; Editing by Francesco Canepa)


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