PARIS, France (AFP) – European companies have close to a trillion euros in cash – far more than before the financial crisis – and are set to invest heavily during the next 12 months, auditor Deloitte said recently.

Companies in Europe had 936 billion euros (US$1.2 trillion) of liquidity in 2013, up from 916 billion euros the previous year, the consultancy group said in a study.

However, these funds are unevenly distributed, with just 17 per cent of companies holding three quarters of the cash, it said.

The sectors showing the biggest cash reserves are industry (325 billion euros), energy (256 billion) and consumer goods (175 billion).

“This recovered liquidity is a sign that Europe is exiting the crisis and that its present intention is growth and investment,” said Katia Ruet, a partner at Deloitte.

Among the companies surveyed, 59 per cent said they were willing to invest in the coming months.

A third of directors questioned said they would finance projects primarily through cash reserves, with 29 per cent indicating they would take advantage of bank loans.

The study was conducted among 271 companies across 14 European countries of varying sizes and in different sectors, Deloitte said.

Investment is one of the early drivers in the cycle of economic growth.

The findings are set against another report published on Monday, showing that the eurozone is lagging badly behind other leading economies.

This report by the Organisation for Economic Cooperation and Development warned that the eurozone had to find ways of spurring growth, if it were to avoid become detached from the performance of other advanced economies.

– AP