Euro Zone Bank Lending Growth Increases in August, According to Reuters

Bank lending to the euro zone economy showed a slight increase in August, reflecting a gradual rebound since the beginning of the year. This growth may be influenced by the expected steady rate cuts from the European Central Bank in the upcoming months, as revealed by ECB data released on Thursday.

Bank credit to businesses rose by 0.8% in August, building on a 0.6% increase in July. Meanwhile, lending to households expanded by 0.6%, compared to a 0.5% rise in the previous month. Both figures have been on an upward trend for most of the year.

Additionally, the circulation of money within the euro area, often seen as a precursor to economic activity, grew by 2.9% in August, surpassing economists’ expectations of 2.6%.