(Reuters) - Loans to euro zone households and firms fell in May, and banks reduced lending to businesses, European Central Bank data showed on Friday. Loans to the private sector fell 0.1 percent from the same month a year ago, compared with a Reuters poll forecast for 0.1 percent growth. The monthly flow of loans to households was 1 billion compared with the previous month's 6 billion. The flow of loans euros to non-financial firms was a negative 9 billion euros after it jumped by 7 billion euros in April. Euro zone M3 money supply - a more general measure of cash in the economy - grew at an annual pace of 2.9 percent in May, picking up from 2.5 percent in April and well above the consensus of 2.3 percent from analysts polled by Reuters. (Reporting By Eva Kuehnen; Editing by John Stonestreet)

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