Eurozone loans to private sector still contracting: ECB

(MENAFN- AFP) Loans to the private sector in the euro area, a gauge of economic health, fell year-on-year in January, but by less than in December, the European Central Bank said Thursday.

The volume of loans to private businesses and households declined by just 0.1 percent in January compared with the same month in 2014, a lower rate than the drop of 0.5 percent recorded in December, the ECB said in a statement.

The long and deep financial crisis in the 19 countries that share the euro has squeezed lending, thus dampening economic activity.

The overall eurozone money supply grew 4.1 percent in January from a year earlier, faster than the 3.8 percent recorded in December.

The ECB regards M3 money supply as a barometer for future inflation.