FRANKFURT: The volume of loans to the private sector in the euro area expanded in October, with a bigger bounce recorded than the previous month, European Central Bank (ECB) data showed on Thursday.
The data are for the ECB a key indicator of economic health, as borrowing is a main financing source for corporate investment which in turn should boost the eurozone’s currently weak economy.
During the month, loans accorded rose 1.0 percent from a year ago, compared to a growth of 0.6 percent recorded in September, an ECB spokesman said.
When certain strictly financial transactions are stripped out from the loans data, the trend remains the same—with credit accorded to households and companies up 0.8 percent in October, up from 0.4 percent in September and 0.7 percent in August.
The ECB has launched a raft of policy measures to get credit flowing, most significantly a massive program to buy more than one trillion euros ($1.1 trillion) worth of public sector bonds to pump liquidity into the system.
It has also pledged to examine if it needs to boost the quantitative easing program when its board meets next week.
Growth in overall money supply, known as M3, also accelerated 5.3 percent in October, up from 4.9 percent in September.
The ECB regards M3 money supply as a barometer for future inflation.