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Business credit continues to slow on rising rates and fears of recession

It fell from 8.3% in November to 6.3% in December according to figures from the European Central Bank.

Euro zone business loan growth slowed in December for the second month in a row, ending the biggest surge in borrowing in more than a decade.

In question, rising interest rates and fears of a possible recession seem to be settling in, show data from the European Central Bank (ECB) released on Friday.

Decrease in loans granted to households as well

Business loan growth rose to 6.3% in December from 8.3% in November, while household credit growth slowed to 3.8% from 4.1%.

The monthly flow of corporate loans fell sharply in December and stood at -16 billion euros, against -4 billion euros a month earlier.

The annual growth rate of M3 money supply, which reflects the cash circulating in the eurozone economy, slowed to 4.1% from 4.8%, a figure well below the Reuters consensus, which the gave 4.6%.

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