Euro area M3 growth edges up to 3.5% as company loan growth eases
Annual growth in the broad monetary aggregate rose from 3.4% in July, European Central Bank figures show, while growth in adjusted loans to non-financial corporations slowed to 4.2%.
AI illustrationAnnual growth in the euro area's broad monetary aggregate M3 picked up slightly in August, while lending growth to companies slowed, according to monthly figures published on 25 September by the European Central Bank.
M3 grew at an annual rate of 3.5% in August 2026, compared with 3.4% in July, the bank said. Over the three months up to August, the rate averaged 3.4%.
The components moved in different directions. Annual growth in M1, the narrower aggregate made up of currency in circulation and overnight deposits, fell to 2.9% from 3.1% in July. Short-term deposits other than overnight deposits (M2-M1) grew 4.1%, up from 3.7%, and marketable instruments (M3-M2) grew 7.1%, up from 4.2%.
In terms of contributions to M3 growth, M1 added 1.8 percentage points, down from 2.0 percentage points in July. Short-term deposits other than overnight deposits added 1.2 percentage points, up from 1.1, and marketable instruments 0.5 percentage points, up from 0.3.
Deposit growth slowed for both households and non-financial corporations. Deposits placed by households grew at an annual rate of 2.4% in August, after 2.6% in July. For non-financial corporations the rate was 4.7%, after 5.3%. Deposits of investment funds other than money market funds grew 1.8%, compared with 1.7% in July.
On the credit side, annual growth in adjusted loans to the private sector rose to 4.3% in August from 4.1% in July. The bank adjusts these figures for loan transfers and notional cash pooling. Growth in adjusted loans to households stayed at 3.1%, unchanged from July, while growth in adjusted loans to non-financial corporations eased to 4.2% from 4.4%.
Total claims on euro area residents grew at an annual rate of 2.4% in August, against 2.3% the month before. Growth in claims on the private sector rose to 3.6% from 3.4%, while the rate for claims on general government was -0.6%, compared with -0.5% in July.
The bank said the data are adjusted for seasonal and end-of-month calendar effects unless stated otherwise. It added that linked data may change in later releases as a result of revisions.