According to the report from the European Central Bank (ECB), in June, the M3 monetary aggregate rose by 2.2% per year, accelerating compared to May (+1.5%, revised from +1.6%), and exceeding economists' forecasts (+1.9%). It was the seventh 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 3.4% per annum, slowing compared to May (-5.0%). The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 12.7% from 14.7% in May. The annual growth rate of marketable instruments (M3-M2) increased to 18.6% in June from 17.5% in May.
Looking at the components' contributions to the annual growth rate of M3, the M1 contributed -2.3% (compared to -3.4% in May), short-term deposits other than overnight deposits (M2-M1) contributed 3.5% (compared to 4.0% in May) and marketable instruments (M3-M2) contributed 1.1% (compared to 1.0% in May).
The data also showed that the private loans rose by 0.3% per year after a similar increase in May. Economists had expected growth of 0.5% per annum. Overall private sector credit growth, encompassing both households and non-financial corporations, picked up to 1.1% from 0.8%. Lending to companies grew by 0.7% per year after an increase of 0.3% per annum in May.