Growth in borrowing by households picked up in the eurozone in January, data released Monday by the European Central Bank showed, while growth in businesses' appetite for credit remained steady. The rate of loan growth to firms and consumers is a closely-watched indicator for the economic outlook. Overall, lending to the private sector grew by 2.2 percent year-on-year in the 19-nation single currency area, after already growing by the same rate in December.
Correcting for some purely financial transactions, January's figure stood at 2.4 percent - an increase of 0.1 percentage points over the previous month. Still, in adjusted terms, household borrowing grew 2.2 percent in January - 0.2 points faster than in December - while growth in credit to businesses held steady at 2.3 percent. The figures meant "a largely pleasing set of news for the ECB," IHS Markit economist Howard Archer commented, representing "evidence that its monetary policy is providing valuable support to eurozone growth". Loan growth to businesses remained at a seven-year high in January, while growth in credit to households hit its highest level since May 2011, he noted.
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