Eurozone Money Supply Growth Slows In August

Eurozone Money Supply Growth Slows In August


Eurozone money supply growth slowed more than expected in August, data published by the European Central Bank showed Thursday.
The annual growth rate of the broad money aggregate, M3, decreased to 2.9 percent in August from 3.6 percent in July. Economists expected the rate of growth to ease to 3.3 percent.
The three-month average of the annual growth rates of M3 in the period from June to August remained unchanged at 3.2 percent compared to the previous period. This was forecast to rise 3.4 percent.
M1 or narrow money grew 5.1 percent year-on-year in August, faster than the 4.5 percent increase in July.
Further, data showed that the credit extended to private sector fell 0.6 percent annually in August compared to 0.4 percent drop in the previous month. The annual growth rate of loans to households stood at 0.2 percent in August, compared with 0.3 percent in July.
The annual rate of growth of lending for house purchase, the most important component of household loans, stood unchanged at 0.8 percent during the month.