Bank lending unexpectedly rose at its fastest pace since 2009, a positive sign in an economy that Prime Minister Shinzo Abe is trying to steer out of the deeper than expected recession.

Loans, excluding lending by local ¡°shinkin¡± credit banks that serve consumers and small businesses, rose 2.8 percent in November from a year earlier, accelerating from a 2.4 percent increase in October and marking the biggest gain since May 2009.

The median estimate in a Bloomberg News survey of economists was a 2.4 percent rise.

Sliding business investment that drove two straight quarters of contraction underscores Abe¡¯s challenges with his re-election campaign focused on the economy. The weaker yen, one key outcome of Abe¡¯s policies, had the side effect of inflating the local-currency value of dollar-denominated loans extended by metropolitan banks, said Akiyoshi Takumori, an economist at Sumitomo Mitsui Asset Management Co.

¡°More importantly, lending by local banks is growing as well, a good sign that the benefits of ¡®Abenomics¡¯ are gradually expanding to regional economies,¡± Takumori said.

Japanese companies had near-record cash holdings at the end of June, a stockpile built up over years of deflation, and are headed toward their highest profits ever as the weaker yen boosts earnings from overseas.

¡°Companies have piled up a huge amount of cash. So we have to see this pile fall through spending on capital investment or wages before we see bank lending grow more remarkably,¡± Takumori said.

It¡¯s premature to say the unexpected strength in lending is a sign that Japan is clear of deflation, said Toru Suehiro, an economist at Mizuho Securities Co.

¡°Given that capital investment is not growing and the fundamentals of economy are unstable, chances are high that growth in bank lending won¡¯t continue,¡± Suehiro said.