Ekonomické zprávy

Eurozone M3 money supply increased slightly at the beginning of 2024

According to the report from the European Central Bank (ECB), in January, the M3 monetary aggregate rose by 0.1% per annum after a similar increase in December. It was the second increase in a row after a five-month drop. Economists had expected the M3 monetary aggregate to grow by 0.3% per annum.

Meanwhile, the narrower M1 aggregate, which includes money in circulation and overnight deposits, fell by 8.6% per annum, accelerating compared to December (-8.5%). The annual growth rate of short-term deposits, except overnight deposits (M2-M1), decreased to 19.8% from 20.9% in December.

Looking at the components' contributions to the annual growth rate of M3, the M1 contributed -6.1% (compared to -6.0% in December), short-term deposits other than overnight deposits (M2-M1) contributed 5.0% (compared to 5.2% in December) and marketable instruments (M3-M2) contributed 1.2% (compared to 1.0% in December).

The data also showed that the private loans rose by 0.3% per year after a 0.4% per year increase in December (revised from +0.3%). It was the weakest pace of growth since March 2015, due to the dampened demand for credit caused by the ECB's monetary policy tightening. Economists had expected an increase of 0.4% per annum. Lending to companies grew by 0.2% per annum, slowing compared to December (+0.5%, revised from +0.4%). Overall, the data indicated that the eurozone was not yet experiencing its long-awaited economic recovery.

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