Lending to eurozone households and firms accelerated slightly in July, European Central Bank data showed yesterday, in a sign that the bank’s aggressive asset-purchase programme is bringing some results.

Lending growth to households picked up to 1.9 per cent in July from 1.7 per cent a month, demonstrating resilience in the face of a slowdown in China and other emerging economies.

Credit to companies, arguably the most important driver for long-term recovery, accelerated to 0.9 per cent from 0.2 per cent, the data showed.

Sparse lending to companies has dogged the struggling eurozone economy but the picture has been improving since late 2014, helped by the ECB’s asset-buying programme, or ‘quantitative easing’.

“The ECB’s monetary stimulus is working its way through the system,” said Holger Schmieding, an economist at Berenberg Bank in London. “Households and companies have money to spend, the credit cycle is turning up.”

The ECB’s growth expectations are too high

But the slowdown in China, which will especially affect exporters such as Germany, is casting a shadow and ECB chief economist Peter Praet has said the bank is ready to ramp up its efforts if needed.

The policy-setting Governing Council will meet next week as the ECB publishes new price inflation and growth forecasts, which may have to be cut due to a slump in oil prices and a weaker global economy.

“The ECB’s growth expectations for next year are too high,” said Joerg Kraemer, an economist with Commerzbank.

“Germany is not immune to a slowdown in China... We expect the ECB will loosen its monetary stance.”

The M3 measure of money circulating in the eurozone, which is often an early indicator of future economic activity, grew by 5.3 per cent in July, the best reading since April. It beat forecasts for 4.9 per cent.