The Eurozone’s financial pulse is quickening, with fresh data revealing a robust uptick in lending activity signaling a potential economic thaw. In January, the European Central Bank (ECB) reported an acceleration in loans to non-financial corporations, climbing at an annual rate of 2.0%, up from December’s 1.7%. This marks a decisive shift, with corporate borrowing swelling by €7 billion month-over-month— a stark contrast to the sluggish €39 billion rise seen prior.

Total credit growth across the Eurozone hit a yearly pace of 1.5%, rebounding from a tepid 0.9% in December. Households are fueling the charge, with loans to individuals rising 2.3% annually (up from 2.0%), while government borrowing eked out a modest 0.3% gain, reversing a prior 1.0% decline. Drilling deeper, home purchase loans edged up to 1.2% from 1.1%, and consumer credit roared ahead at 4.0%, slightly topping December’s 3.8%.

The money supply metric M3—a key barometer tied to credit flows—grew at a 3.6% annualized clip, up from 3.4%, though it fell shy of the 3.8% economists polled by Dow Jones Newswires had anticipated. Narrower M1, encompassing cash and demand deposits, surged to 2.7% from 1.8%, underscoring a swell in liquid funds coursing through the system.

This lending revival hints at cautious optimism in the fiat-driven Eurozone economy, as businesses and consumers alike tap into credit to stoke growth.