The European Central Bank published its euro area monetary developments data for December 2024, showing the annual growth rate of broad money M3 slowed to 3.5% from 3.8% in November. Over the same period, narrower money M1 rose to 1.8% from 1.5%, while lending momentum strengthened with adjusted loans to households rising to 1.1% from 0.9% and adjusted loans to non-financial corporations increasing to 1.5% from 1.0%. Within M3, growth in short-term deposits other than overnight deposits fell to 4.5% from 6.1% and marketable instruments eased to 16.3% from 17.0%, with M3 contributions of 1.1 percentage points from M1, 1.3 percentage points from other short-term deposits and 1.0 percentage point from marketable instruments. Household deposits grew 3.5% year on year, unchanged, while deposits from non-financial corporations rose to 2.9% from 2.3% and deposits from investment funds other than money market funds slowed to 7.4% from 7.9%; on the counterparts side, net external assets contributed 3.6 percentage points and claims on the private sector contributed 1.7 percentage points, while claims on general government and longer-term liabilities contributed -0.4 and -1.8 percentage points respectively.
European Central Bank 2025-01-29
European Central Bank reports euro area M3 growth eased to 3.5% in December while household and corporate loan growth picked up
The European Central Bank reported a slowdown in the annual growth rate of broad money M3 to 3.5% in December 2024, down from 3.8% in November. Narrower money M1 increased to 1.8%, and lending momentum improved with adjusted loans to households and non-financial corporations rising to 1.1% and 1.5%, respectively. Household deposits remained stable at 3.5% growth, while deposits from non-financial corporations increased to 2.9%.