Eurozone Private-Sector Loans Fall Again in August

Biggest monthly drop on record suggests eurozone economy is still struggling to recover from recession.

Lending to companies and households in the euro area fell the most on record in August, signaling that the economy is still struggling to recover from its longest-ever recession.

Loans to the private sector dropped 2 percent from a year earlier, the Frankfurt-based European Central Bank said today. That’s 16th monthly decline and the biggest since the start of the single currency in 1999. Adjusted for loan sales and securitization, lending contracted 1.5 percent in August.

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