Private sector credit growth in the euro area weakens

BRUSSELS (dpa-AFX) – Loans to the private sector in the euro zone weakened in November, according to data published on Thursday by the European Central Bank.

Adjusted loans to the private sector grew at a slower pace, 1.5 percent, after increasing 1.7 percent in October.

Among borrowing sectors, adjusted loans to households increased by 0.9 percent from 0.8 percent in October. At the same time, business loan growth slowed to 1.0% from 1.2%.

The data showed that claims on the private sector recorded annual growth of 1.3 percent in November, compared to 1.2 percent in the previous month.

The year-on-year growth of the narrow monetary aggregate M1, including currency in circulation and demand deposits, increased notably to reach 1.5% against 0.2% in October.

Growth in the broad measure M3 improved to 3.8 percent from 3.4 percent the previous month.