Euro Area Monetary Developments

Data Macro

Source: European Central Bank
Source Link: https://www.ecb.europa.eu/
Frequency: Monthly
Next Release(s): September 25th, 2025 4:00 AM

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Euro area M3 money supply growth edged up to 3.4% YoY in July 2025 (from 3.3% YoY in June), supported by stronger M1 growth while marketable instruments slowed.
- M1 growth rose to 5.0% YoY (June: 4.7%), contributing 3.2 ppts to M3 growth, while M2–M1 deposits contracted -0.8% YoY and marketable instruments eased to +6.4% YoY (June: +10.4%).
- Household deposits increased +3.4% YoY (prev 3.3%), and deposits by non-financial corporations accelerated to +2.7% YoY (prev 1.6%).
- Deposits by investment funds fell sharply to +6.3% YoY (prev 13.1%), limiting overall momentum.
- Claims on euro area residents grew +2.1% YoY (prev 2.0%), with government claims accelerating to +0.6% YoY while private sector claims held at +2.7% YoY.
- The growth of adjusted loans to the private sector was 2.8% YoY in July, down from 3.0% YoY in June.
- Adjusted loans to households rose to +2.4% YoY (prev 2.2%), and loans to non-financial corporations edged up to +2.8% YoY (prev 2.7%).
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Euro area M3 money supply growth slowed to 3.3% YoY in June (from 3.9% in May), as decelerating M1 and weaker deposit growth across sectors offset gains in marketable instruments.
- M1 growth fell to 4.6% YoY (May: 5.1%), contributing 2.9 ppts to M3 growth; M2–M1 deposits declined -1.1% YoY and marketable instruments rose 10.4% YoY.
- Household deposit growth slowed to 3.3% YoY (from 3.5%), while deposits by non-financial corporations dropped to 1.5% YoY (from 2.7%).
- The growth of loans to the private sector was 3.0% YoY in June, up from 2.8% YoY in May.
- Adjusted loans to households rose 2.2% YoY (May: 2.0%), and loans to non-financial corporations increased 2.7% YoY (May: 2.5%).
- Claims on the private sector rose 2.7% YoY, while claims on general government slowed to 0.1% YoY.
- Net external assets contributed 2.4 ppts to M3 growth, while longer-term liabilities subtracted -1.1 ppts.
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Euro area M3 money supply grew 3.9% YoY (vs 4.0% YoY) in May, unchanged from April, with stronger M1 growth offsetting declines in short-term deposits.
- M1 rose 5.1% YoY (vs 4.7% in April), contributing 3.2 ppts to M3 growth; short-term deposits (M2-M1) declined -0.1% YoY, and marketable instruments (M3-M2) rose 11.2% YoY.
- Household deposit growth picked up slightly to 3.5% YoY, while deposits by non-financial corporations rose 2.7% YoY; investment fund deposits slowed to 15.4% YoY (from 21.2%).
- Adjusted loans to households rose 2.0% YoY (vs 2.0% YoY expected and 1.9% YoY previously), while loans to non-financial corporations slowed to 2.5% YoY (vs 2.6% YoY previously).
- Net external assets contributed 2.6 ppts to M3 growth; claims on the private sector added 2.4 ppts.
- Total claims on euro area residents increased 2.0% YoY, with claims on general government at 0.6% YoY and on the private sector at 2.5% YoY.
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Euro area M3 money supply increased 3.9% YoY in April, up from 3.7% in March and ahead of expectations of a 3.7% YoY increase, supported by stronger M1 and loan growth.
- M1 (currency + overnight deposits) rose 4.7% YoY in April, up from 3.9%.
- Total private sector loan growth edged up from 2.6% YoY in March to 2.7% YoY in April.
- Household loan growth increased to 1.9% YoY (vs 1.8% YoY expected) up from 1.7% YoY, while loans to non-financial corporations rose to 2.6% YoY up from 2.4% YoY.
- Deposits from non-financial corporations accelerated to 2.6% YoY (from 2.2%), and investment funds' deposits surged to 21.2% YoY.
- Short-term deposits (M2-M1) slowed to 0.6% YoY (from 1.5%), and marketable instruments (M3-M2) eased to 10.8% (from 11.9%).
- Net external assets remained a key contributor to M3 growth at 2.7 ppts, with claims on the private sector contributing 2.2 ppts.
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Euro area M3 money supply increased 3.6% YoY in March, down from 3.9% YoY in February and well below expectations of an increase of 4.0% YoY.
- The deceleration in M3 money supply growth came primarily from a weaker contribution of net external assets, 2.7 ppts in Mar vs 3.1 ppts in Feb.
- The M1 money supply increased 3.8% YoY, up from 3.4% YoY previously.
- Total private sector loan growth was 2.6% YoY, up from 2.4% YoY previously.
- Household loan growth was 1.7% YoY in March, up from 1.5% YoY in February and above expectations of a 1.6% YoY increase.
- Non-financial corporate loan growth was 2.3% YoY, up from 2.1% YoY previously.
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Euro area M3 money supply increased 4.0% YoY in February, up from 3.8% YoY in January (which was revised up from 3.6% YoY) and above expectations of a 3.8% YoY increase.
- The M1 money supply increased 3.5% YoY, up from 2.7% YoY.
- Private sector loan growth was 2.5% YoY in February, up from 2.3% YoY.
- Household loan growth was 1.5% YoY, up from 1.3% YoY and above expectations of a 1.4% YoY increase.
- Non-financial corporate loan growth was 2.2% YoY, up from 2.0% YoY.
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The euro area M3 money supply increased 3.6% YoY in January, up from 3.4% YoY in December but below expectations of a stronger increase of 3.8% YoY.
- The M1 money supply was up 2.7% YoY vs 1.8% YoY previously.
- Total private sector loan growth was 2.3% YoY in January, up from 2.0% YoY in December.
- Loans to households grew 1.3% YoY (vs 1.2% YoY expected), up from 1.1% YoY and the strongest since July 2023.
- Loans to corporations grew 2.0% YoY, up from 1.7% YoY and the strongest since July 2023.
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Euro area M3 money supply growth eased to 3.5% YoY in December, down from 3.8% YoY in November. The narrower M1 money supply increased 1.1% YoY, a slight acceleration from 0.9% YoY. Other components, as short-term deposits (M2-M1) slowed significantly from 6.1% YoY to 4.5% YoY, and marketable instruments (M3-M2) decelerated from 17.0% YoY to 16.3% YoY.

The divergence suggests that shifts into term deposits to take advantage of higher rates are losing momentum as rate cuts start to take effect with more likely coming in the future. Some depositors may be seeking higher yields in other assets, given the large marketable instruments component (M3-M2) is still growing at 16.3% despite slowing.

Adjusted loans to the private sector increased to 2.0% YoY in December from 1.5% YoY in November, with improvements across both major borrowing sectors. Household lending growth accelerated to 1.1% YoY from 0.9% YoY, and corporate lending showed an even stronger pickup, rising to 1.5% YoY from 1.0% YoY. In general, lower rates are having the intended effect of easing credit conditions and a strong acceleration in overall loans suggests economic confidence in the euro area has not capitulated.

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The euro area M3 money supply increased 3.8% YoY in November, up from 3.4% YoY in October and faster than the 3.5% YoY expected. M1 money supply was up 1.5% YoY vs 0.2% YoY previously.

The growth of loans to the private sector eased slightly to 1.5% YoY in November, down from 1.7% YoY in October. Loans to households were up 0.9% YoY (vs 0.8% YoY previously), and loans to non-financial corporations were up 1.0% YoY (vs 1.2% YoY previously). This report suggests that despite easing financial conditions, euro area firms’ credit growth is being dampened by weaker economic conditions.

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