Lending, money data indicate weak eurozone economy

AP News
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Posted: May 30, 2012 5:17 AM
Lending, money data indicate weak eurozone economy

Credit and money data from the European Central Bank are showing that the eurozone economy remains weak.

The numbers released Wednesday show that the (EURO)1 trillion ($1.25 trillion) in emergency loans from the ECB to commercial banks is not reaching consumers and businesses in the form of loans.

The annual growth in lending by banks to the private sector slipped to 0.3 percent in April from 0.6 percent in March. Meanwhile, the supply of money in the economy grew by only 2.5 percent in April, down from 3.2 percent in March.

Growth in the money supply and more borrowing and more credit would be signs of a recovery.

But predictions are that output will shrink this year. That could complicate efforts to solve the continent's debt crisis.