European Central Bank reports euro area M3 growth rose to 3.2% in May as corporate lending accelerated

The European Central Bank published its latest euro area monetary developments, showing stronger broad money growth in May 2026 alongside firmer bank lending to the private sector. The annual growth rate of M3 increased to 3.2% from 2.7% in April, while adjusted loans to the private sector rose to 3.9% from 3.5%. Within that, adjusted loans to households edged up to 3.1% from 3.0% and adjusted loans to non-financial corporations increased to 4.0% from 3.4%. Growth strengthened across the main components of M3. M1 rose to 4.0% from 3.8%, short-term deposits other than overnight deposits increased to 1.4% from 0.9%, and marketable instruments rose to 3.2% from 0.9%. By holding sector, household deposits were unchanged at 2.9%, deposits by non-financial corporations increased to 4.2% from 3.8%, and deposits by investment funds other than money market funds remained negative at -0.4% but improved from -5.8%. On the counterparts side, claims on the private sector made the largest positive contribution to M3 growth at 3.1 percentage points, while net external assets contributed 1.9 percentage points and longer-term liabilities reduced growth by 1.4 percentage points.