EU Economy
Eurozone M3 money supply growth grew slightly in March and lending to the private sector fell
By Finfacts Team
Apr 29, 2011 - 11:40 AM

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Eurozone M3 money supply growth grew slightly in March and lending to the private sector fell according to data from the European Central Bank on Friday.

M3 is a measure of broad money supply and credit in the Eurozone economy and the annual target growth rate of the ECB is 4.5%.

M3 was 2.3% in March up from 2.1% in February. The three month average of the annual growth rates of M3 over the period January 2011 - March 2011 increased to 2.0%, from 1.8% in the period December 2010 - February 2011.

The ECB said in respect of the components of M3,  the annual growth rate of M1, which is mainly cash, stood at 3.0% in March 2011, compared with 2.9% in February. The annual growth rate of short-term deposits other than overnight deposits increased to 2.2% in March, from 1.8% in the previous month. The annual growth rate of marketable instruments stood at -0.2% in March, compared with -0.3% in February.

The central bank said the annual growth rate of total credit granted to Eurozone residents fell to 3.2% in March 2011, from 3.8% in the previous month. The annual growth rate of credit extended to general government dipped to 7.7% in March, from 10.5% in February, while the annual growth rate of credit extended to the private sector stood at 2.2% in March, compared with 2.3% in the previous month.

The annual growth rate of loans to the private sector stood at 2.5% in March, compared with 2.6% in the previous month (adjusted for loan sales and securitisation the annual growth rate of loans to the private sector decreased to 2.8%, from 3.0% in the previous month). The annual growth rate of loans to non-financial corporations increased to 0.8% in March, from 0.6% in February. The annual growth rate of loans to households increased to 3.4% in March, from 3.0% in the previous month.

The annual growth rate of lending for house purchase increased to 4.4% in March, from 3.8% in the previous month; the annual growth rate of consumer credit was more negative at -0.9% in March, from -0.7% in February, while the annual growth rate of other lending to households decreased to 2.1% in March, from 2.6% in the previous month.

Finally, the annual growth rate of loans to non-monetary financial intermediaries (except insurance corporations and pension funds) decreased to 5.7% in March, from 8.7% in the previous month.


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