ECB data point to widening split in euro zone economy

FILE PHOTO: The European Central Bank logo is pictured before a news conference on the outcome of the meeting of the Governing Council in Frankfurt, Germany, January 23, 2020. REUTERS/Ralph Orlowski

Many companies in the euro zone are struggling with plunging trade and a manufacturing recession, but consumers remain relatively optimistic. Wages and employment are still rising and the service sector continues to expand. Hoping to prop up growth, the ECB introduced a controversial stimulus package in September, aimed at cutting credit costs to keep money flowing to businesses while growth was slowing. Recent surveys indicate stabilization, but Wednesday’s lending figures add nuance to that picture.

The drop came as companies shied away from long-term credit, the segment the ECB is hoping to boost with ultra cheap funding.

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