Eurozone Economy Resilient Despite Tighter Financing Conditions

The Eurozone economy remains resilient despite tighter financing conditions, according to recent lending data. The broad money supply (M3) grew 3.5% year-on-year in August, up from 3.4% in July, although growth still lags behind the historical average of 5.2%. Household loan growth remained steady at 3.1%, while loans to non-financial corporations eased slightly to 4.2%.

ING economist Peter Vanden Houte noted that demand for credit among households and businesses has been only marginally affected by tighter financing conditions. The latest European Central Bank Consumer Expectations Survey also indicated a slight decrease in the net percentage of consumers reporting difficulty accessing credit.

The figures suggest that the eurozone economy is not yet facing a sharp slowdown, despite ongoing global uncertainty. With inflation risks remaining high, the data continues to support expectations of another interest-rate increase in December.