Financial News: Eurozone Private Sector Growth Slows In February

Eurozone Private Sector Growth Slows In February

03/26/2026 - 06:02:00 (RTTNews)

(RTTNews) - Eurozone private sector credit grew at a slightly slower pace in February ahead of the war in Iran, data published by the European Central Bank showed Thursday.

Loans to the private sector expanded 3.3 percent in February, slightly slower than the 3.4 percent increase in January.

Adjusted loans to households posted an annual growth of 3.0 percent, the same rate as in the previous month. Meanwhile, loans to non-financial corporations grew at a slower pace of 2.9 percent, following a 2.8 percent rise in January. The broad monetary aggregate M3 registered an annual growth of 3.0 percent but weaker than January's 3.2 percent increase. Likewise, the annual growth in M1 monetary aggregate eased to 4.8 percent from 5.2 percent in January.

ING Bert Colijn said steady growth in bank lending says little about current developments, as the war in the Middle East is already resulting in tighter financial conditions. This puts downward pressure on expectations for investment growth in 2026, Colijn added.

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