According to the report from the European Central Bank (ECB), in April, the M3 monetary aggregate rose by 3.9% per year after increasing by 3.7% per year in March (revised from +3.6%). Economists had expected a 3.7% increase. It was the 17th increase in a row.
Meanwhile, the narrower M1 aggregate, which includes money in circulation and overnight deposits, grew by 4.7% per year, accelerating compared to March (+3.9%). The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 0.6% from 1.5% in March. The annual growth rate of marketable instruments (M3-M2) decreased to 10.8% from 11.9% in March.
Looking at the components' contributions to the annual growth rate of M3, the M1 contributed 3.0% (compared to 2.4% in March), short-term deposits other than overnight deposits (M2-M1) contributed 0.2% (compared to 0.5% in March) and marketable instruments (M3-M2) contributed 0.7% (compared to 0.8% in March).
The data also showed that the private loans rose by 1.9% per year after an increase of 1.7% in March. Economists expected an increase of 2.8% per annum. The latest increase was the strongest since May 2023. Lending to companies grew by 2.6% per year, accelerating compared to March (+2.3%), and exceeding economists' forecasts (+2.4%).