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Bert Colijn, senior economist at ING, notes that the Eurozone’s lending growth in March once again disappointed as loan growth to households decreased slightly from 3.3% to 3.2% YoY and seems to have plateaued.

Key Quotes

“Loan growth to non-financial businesses declined to 3.5% and even though February data was strong, the peak in loan growth of 4.3% in September 2018 is well behind us. Uncertainty and lack of confidence in the business world seem to have a material impact as financial conditions remain very favourable for the moment.”

“Indeed, economic sentiment declined again in April as the Economic Sentiment Indicator dropped from 105.4 to 104. This rounds out a poor start of the surveys to Q2 as the PMI, Ifo and consumer confidence also fell this month.”

“So although incoming data hasn’t exactly turned a corner yet, hope for a growth pickup in the coming months remains alive.”