(MENAFN- AFP) Loans to the private sector in the euro area, a gauge of economic health, fell year-on-year in August, but by slightly less than in July, the European Central Bank said on Thursday.
The volume of loans to private businesses and households declined by 1.5 percent in August compared with the same month in 2013, a slightly lower rate than the minus 1.6 percent recorded in July, the ECB said in a statement.
The long and deep financial crisis in the 18 countries which share the euro has squeezed lending, thus dampening economic activity.
The overall eurozone money supply grew 2.0 percent in August from a year earlier, higher than the 1.8-percent growth in July.
The ECB regards M3 money supply as a barometer for future inflation.
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