FRANKFURT (Oct 26): Euro zone firms are having a harder time getting credit from their banks just as their finances are squeezed by more expensive ​fuel and higher costs, a European Central Bank survey showed ‌on Monday.

The ECB has been gradually raising interest rates to stem an energy-driven rise in inflation, though it is expected to stay put this week to garner more evidence ​on how higher borrowing costs, including on the bond market, are affecting the ​economy.

Its quarterly Survey on the Access to Finance of Enterprises ⁠in the euro area showed some strains were becoming visible, with firms ​reporting higher interest rates and a decrease in the availability of bank loans.

Firms ​said they needed more credit lines just as these were becoming harder to get.

"The continued simultaneous increase in the need for both trade credit and credit lines suggests ​that firms are facing broader pressures on their working capital, potentially driven ​by higher input costs," the ECB said.

"However, the decrease in credit line availability signals that ‌banks ⁠are becoming more cautious in extending this type of financing, which could further constrain firms' ability to meet their short-term funding needs," it added.

The share of firms reporting obstacles to obtaining a bank loan increased to 7% ​in the three ​months to September ⁠from 5% in the previous quarter.

The survey also showed large increases in firms' expectations for prices, wages and other ​costs, but the ECB said this was skewed by ​a large ⁠number of first-time respondents.

Firms that took part in both of the last two rounds of the poll expected prices to rise on average by 3.6% in the coming ⁠12 ​months, compared with 2.5% in the second quarter's ​survey.

Across the full sample of 12,822 enterprises, firms expected selling prices to rise by 7.1%, compared ​with 3.2% in the previous poll.

Uploaded by Siow Chen Ming