FRANKFURT, Nov. 7 (Xinhua) -- Enterprises surveyed by the European Central Bank (ECB) have reported that financing conditions are tightening in the euro area, according to the result published by the central bank on Thursday.
Although fewer enterprises in the latest round of survey reported increase of interest rates on bank loans, 30 percent indicated that other financing costs have increased.
"Firms reported little changes regarding the availability of bank loans. However, firms' need for bank loans has declined moderately, partly due to internal funds," the ECB said in a statement.
The survey also showed that cost pressure has been piling on firms in the euro area. While they are generally optimistic about the development in the next quarter, firms report a deterioration of their profits.
Firms' median expectations for annual inflation in one, three and five years stood at 2.9 percent, the lowest rate since last December. The survey revealed that small and medium-sized enterprises (SMEs) tended to report higher inflation expectations compared with large firms.
A total of 12,788 firms in the euro area took part in the ECB survey, which was conducted between Sept. 2 and Oct. 15. ■
