The annual growth rate of the narrower aggregate M1, comprising currency in circulation and overnight deposits, decreased to 3.4 per cent in June from 3.7 per cent in May, with May revised from 4.0 per cent. Short-term deposits other than overnight deposits, or M2-M1, rose to 2.8 per cent from 1.4 per cent, while marketable instruments, or M3-M2, increased to 4.5 per cent from 3.2 per cent.
Euro area broad money growth rose to 3.3 per cent in June 2026, while M1 growth eased to 3.4 per cent.
Adjusted loans to households held at 3.0 per cent and loans to non-financial corporations stayed at 4.0 per cent.
The data give sourcing, retail and manufacturing teams another indicator for monitoring euro-area liquidity and credit conditions.
In terms of contribution to annual M3 growth, M1 contributed 2.2 percentage points in June, down from 2.4 percentage points in May. Short-term deposits other than overnight deposits contributed 0.8 percentage points, up from 0.4 percentage points, and marketable instruments contributed 0.3 percentage points, up from 0.2 percentage points.
Among deposit-holding sectors within M3, the ECB reported that annual growth in deposits placed by households decreased to 2.6 per cent in June from 2.8 per cent in May. Deposits placed by non-financial corporations increased to 5.3 per cent from 4.2 per cent, while deposits placed by investment funds other than money market funds increased to 1.6 per cent from -0.6 per cent.
For the counterparts of M3 on the monetary financial institution (MFI) consolidated balance sheet, the bank said claims on the private sector contributed 3.1 percentage points to M3 annual growth in June, unchanged from the previous month. Net external assets contributed 2.2 percentage points, up from 1.9 percentage points; claims on general government contributed 0.1 percentage points, up from 0.0 percentage points; longer-term liabilities contributed -1.6 percentage points, down from -1.4 percentage points; and the remaining counterparts of M3 contributed -0.5 percentage points, up from -0.6 percentage points.
The annual growth rate of total claims on euro area residents stood at 2.4 per cent in June 2026, unchanged from the previous month. Claims on general government increased to 0.3 per cent from 0.1 per cent, while claims on the private sector stood at 3.3 per cent, unchanged from the previous month.
The adjusted loans to the private sector, adjusted for loan transfers and notional cash pooling, stood at 3.9 per cent in June, unchanged from the previous month. Within the non-financial private sector, adjusted loans to households stood at 3.0 per cent, unchanged from the previous month and with the previous month revised from 3.1 per cent. Adjusted loans to non-financial corporations stood at 4.0 per cent, also unchanged from the previous month.
The central bank noted that data in the release were adjusted for seasonal and end-of-month calendar effects unless stated otherwise. It defined the private sector as euro area non-MFIs excluding general government.
Fibre2Fashion News Desk
