Bert Colijn, Senior Economist at ING, notes that the Eurozone’s loan growth to both households and corporations stalled, providing only weak support to GDP growth in the months ahead
Key Quotes
“While the pace of loan growth to both households and non-financial corporates is the quickest since the crisis, the change in credit growth has slowed over the past year.”
“July’s growth of 4.1% year-on-year in loans to non-financial corporations was flat from last month, which was also the case for the 3% year-on-year growth in loans to households.”
“The pace of growth does support investments in the economy somewhat, but the credit impulse remains quite weak.”
“The faster growth in the monetary aggregates in June was also a temporary improvement, as July showed a decline from 4.5% to 4% growth in M3.”
“The slowdown was not limited to the broad monetary indicator, also the more narrow M1 declined from 7.5% to 6.9%.”
“On the surface, monetary developments were not all bad, but they also do not provide the firepower needed for a strong end of the year.”
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