Eurozone credit to companies and households increases +0.3%

Spanish banks credit lending

Bankia Estudios | The credit statistics for Eurozone residents elaborated by the ECB for May shows an increase in the balance for companies of households of +0.3% (+35.775 Bn€), in line with the monthly increases so far this year and the same as the increase in May 2018.

The interannual variation remains +2.4%, a level around which it has stabilised since the second half of 2018. The total balance is 1o,274.189 Bn€, 69% in the core economies.

By sectors, in May credit to Eurozone companies grew +0.6% (+28.130 Bn€), in line with the previous month (+0.5%) and the same rate as in May 2018. The evolution of company credit is not homogenous across countries as the balance increases in all the core countries (+0.8% monthly in aggregate) but is uneven in the periphery (in aggregate +0.3%). In interannual terms, company credit remains +2%, with a significant difference between the core (+6%) and the periphery (-5.8%).

Household credit in the Eurozone increased +0.1% (+7.645 Bn€), in line with the previous month (+0.2%) and the same as May 2018. By destinations, housing grew +0.1% and consumption 0.8% monthly, while the rest fell -0.2%. In interannual terms, the rate improved minimally by one tenth to +2.8%, a level which has not been exceeded since December 2017. By destinations, housing increased interannually +3.5%, a fairly stable rhythm this year, while consumption increased +4.7% (+6 tenths above the month before) and the rest fell -3.3%, the same as the previous month.

By geography, credit to companies and households in the core economies grew +0.4% in May (+27.901 Bn€), in line with the previous month (0.5%) and May 2018. This month credit to companies grew +0.8% and households +0.1%, with housing +0.1%, consumption +0.8% and the rest -0.3%. By countries, all increases their balances in the month (all positive for companies and only two monthly falls for households, France -0.4% and Luxembourg -2.2%). In interannual terms, credit to companies and households increased +4.9% in the core countries, one tenth less that the previous month; companies advanced +6% (the highest since the beginning of 2009) and households +4.2%. By destinations of household credit, housing increased +4.9%, consumption +3.6% (+1 pp in the month) and the rest of financing +0.0%.

In the periphery the aggregate balance increased +0.2% (+7.125 Bn€) in May compared to stability the month before and in line with the +0.1% in May 2018. All sectors increased in the month: companies +0.3% and households +0.2%, with housing +0.1%, consumption +0.8% and the rest 0%. By countries, small falls predominate, except in Ireland +1%, Spain +0.5% and Portugal +0.3% which together make the aggregate positive. In interannual terms, the fall in the balance remains around -3.1%, in line with this year´s rates. The rates by sector also remain almost unchanged in recent months: companies -5.8% and households -0.7%, with housing very stable over the year at 0.4%, consumption +6.8% and the rest -8.4%.

In Spain, the credit balance for companies and households resident in the Eurozone increased +0.5% (+5.593 Bn€) with an increase for companies of +0.9% and households +0.2%, combining housing 0%, consumption +1.3% and the rest o.2%. In interannual terms, the total fall for companies and households improved one tenth to -1%.