By Eliane Portillo

Financing granted by banking to companies and individuals with entrepreneurial activity grew 7.9% in October.

Banking credit to private sector reached 19 consecutive months in growing but in October 2011 it measured its expansion to 9.4% annual rate, after in September grew 11% annual, according to figures from the Bank of Mexico (Banxico). According to analysts of the private sector, all banking credit categories will continue growing while economic activity and employment expansion continue.

However, they agree that the reduced dynamic of the beginning of the last quarter may be a concern sign on the pace that will maintain the economy, since companies credit was more measured regarding its expansion.

According to Banxico, funding granted by banks to companies and individuals with entrepreneurial activity grew 7.9 in October, below 11.9% in September, which influenced more the adjustment of total banking credit.

In contrast, consume credit in October, 2011 grew at an annual pace of 17.6%, better than 16.9% in September, maintaining the greatest dynamic.

Housing credit expanded to 4.9% by having the slowest performance.

An analysis said that GDP and formal employment growing rate are two variables that affect the dynamism and credit demand. Under the research base scenario can be expected that dynamism sustains in the upcoming months.