The European Central Bank (ECB) reported that bank lending to businesses in the euro zone contracted by 0.3% in October compared to the previous year, marking the first decline since 2015. This comes as the 20-nation currency bloc faces economic challenges, likely entering a recession amid a softening job market and struggling services sectors. Manufacturing remains in recession, partly due to ECB rate hikes. Lending growth to households also slowed to 0.6%, the lowest pace since early 2015. The ECB's intentional rate increases to curb inflation have raised concerns that lending restrictions might exacerbate the economic downturn or impede recovery. Meanwhile, the M3 measure of money supply contracted at a smaller pace of minus 1.0%, potentially indicating challenges in future economic expansion.

SOURCE: GOOGLE