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Economic news
28.08.2024

Eurozone M3 money supply rose less than forecast in July

According to the report from the European Central Bank (ECB), in July, the M3 monetary aggregate rose by 2.3% per year after a similar increase in June (revised from 2.2%). Economists had expected growth to accelerate to 2.7% per annum. It was the eighth increase in a row and the strongest growth since April 2023.

Meanwhile, the narrower M1 aggregate, which includes money in circulation and overnight deposits, fell by 3.1% per annum, slowing compared to June (-3.4%). The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 11.4% from 12.8% in June. The annual growth rate of marketable instruments (M3-M2) increased to 21.0% from 18.7% in July.

Looking at the components' contributions to the annual growth rate of M3, the M1 contributed -2.1% (compared to -2.3% in June), short-term deposits other than overnight deposits (M2-M1) contributed 3.2% (compared to 3.5% in June) and marketable instruments (M3-M2) contributed 1.2% (compared to 1.1% in June).

The data also showed that the private loans rose by 0.5% per year after an increase of 0.3% in June. Economists also expected an increase of 0.5% per annum. The latest increase was the strongest since December 2023. Lending to companies grew by 0.6% per year, slowing down compared to June (+0.7%).

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