January 29, 2020 / 9:16 AM / 21 days ago

Euro zone corporate lending growth falls to 2-year low

FRANKFURT, Jan 29 (Reuters) - Lending to euro zone companies fell to a two-year low last month even as household lending expanded to a post-crisis high, European Central Bank data showed on Wednesday, exposing a widening rift in the bloc’s economy.

Lending growth to non-financial corporations slipped to 3.2% from 3.4% a month earlier but lending to households accelerated to 3.7% from 3.5%, the best reading in 11 years.

While euro zone growth has slowed sharply over the past year on the global trade war and a manufacturing recession, the services sector and consumer spending has remained resilient, suggesting that ordinary consumers are so far immune from the broader difficulties.

The annual growth rate of the M3 measure of money supply, which often serves as an indicator of future activity, plunged to 5.0%, undershooting expectations for 5.5%. (Reporting by Balazs Koranyi; Editing by Alison Williams)

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