Eurozone household lending grows 0.7% in September

In September 2024, bank lending to households in the Eurozone increased by 0.7% year-on-year, reaching a total of €6.900 trillion.

Eurozone household lending grows 0.7% in September

This acceleration from a 0.6% rise in August indicates a strengthening demand for credit among consumers, although it still fell short of market expectations, which had anticipated a growth rate of 0.8%. This marks the fastest pace of household credit growth since October 2023, suggesting a potential rebound in consumer spending as households navigate an uncertain economic landscape. In a parallel trend, lending to businesses also saw an uptick, rising by 1.1% to €5.160 trillion, compared to a more modest 0.8% advance in August. This increase reflects growing confidence among companies to invest in expansion and operations despite lingering economic challenges such as higher borrowing costs and inflationary pressures.

Private sector credit growth in Eurozone edges up to 1.6%

Overall, private sector credit growth, which encompasses household and non-financial corporate lending, increased to 1.6%, a slight increase from 1.5% the previous month. This broadening credit expansion signals a gradual recovery in lending activity within the Eurozone, potentially bolstered by supportive monetary policies from the European Central Bank to stimulate economic growth. However, the data also highlights ongoing concerns over rising interest rates and their impact on borrowing costs, which could affect future lending trends as consumers and businesses adjust their financial strategies in response to the changing economic environment.