Lending data add to evidence that growth has peaked

Euro-zone money and lending growth slowed in February, adding to the evidence from the official data and business surveys that economic growth has peaked. Growth in “narrow” money – which is the sum of currency in circulation and overnight deposits – fell to its weakest rate since late 2016. And growth in “broad” money – which includes M1 as well as less liquid forms of money – declined to its slowest pace since before ECB QE began. Bank lending growth also edged down, from 3.3% to 3.0%. While that was still pretty strong, the so-called “credit impulse”, which puts lending on a comparable basis to GDP growth, points loosely to a slight slowdown in the pace of economic expansion.