This follows the sector's biggest borrowing binge in over a decade, as rising interest rates and the threat of recession appear to be taking their toll. Lending to businesses in the 19-country euro area expanded by 8.4% in November, down from 8.9% in the previous month. Household credit growth also slowed to 4.1% from 4.2%.
A slowdown in M3 Measure of Money Circulating in the Eurozone
In addition to the slowdown in business lending, the M3 measure of money circulating in the eurozone also slowed in November. This measure, which includes bank deposits and cash in circulation, slowed to 4.8% from 5.1%. This came in below expectations of 5.0% in a Reuters survey.
These trends suggest that the eurozone economy may be starting to feel the effects of rising interest rates and concerns about a potential recession. It remains to be seen how these factors will continue to impact lending and economic activity in the region in the coming months.