FRANKFURT (Reuters) - Growth in bank loans to euro zone corporations slowed sharply in June but household lending held at a post-crisis high and a key money supply indicator, which often predicts future economic activity, firmed, European Central Bank data showed on Thursday.
Corporate lending in the 19-country currency bloc grew by 2.1 percent in June, a big slowdown from the previous month's 2.5 percent when growth was at its best pace since 2009.
"The decline in the annual growth rate of loans to non-financial corporations in June reflects to a significant extent intragroup transactions," the ECB said about the data.
While the ECB does not put much weight on single data points, the slowdown may worry policymakers as the rebound in lending had been a strong indicator of the recovery and the effectiveness of ultra easy monetary policy.
Lending to households meanwhile grew by 2.6 percent in June, unchanged from the previous month when it hit its highest pace since March 2009.
The annual growth rate of the M3 measure of money circulating in the euro zone, which has in the past often predicted economic activity, rose to 5.0 percent last month from 4.9 percent in May, in line with expectations for 5.0. percent in a Reuters poll.
For more detail on this data, click on: https://www.ecb.europa.eu/press/pr/stats/md/html/index.en.html