Euro area M3 growth slows to 2.7 percent in April
The annual growth rate of broad monetary aggregate M3 in the euro area decreased to 2.7 percent in April 2026 from 3.2 percent in March. Narrower aggregate M1 also slowed, while loans to non-financial corporations increased.
Monetary aggregates lose pace
The annual growth rate of the broad monetary aggregate M3 in the euro area decreased to 2.7 percent in April 2026, down from 3.2 percent in March, with a three-month average of 3.0 percent.
This deceleration was largely mirrored by the narrower aggregate M1, which comprises currency in circulation and overnight deposits, slowing to 3.8 percent in April from 4.7 percent in March.
Conversely, short-term deposits other than overnight deposits (M2-M1) saw an increase in their annual growth rate to 0.8 percent in April, a notable rise from -0.1 percent in March.
Meanwhile, marketable instruments (M3-M2) experienced a significant decrease, with their annual growth rate falling to 1.1 percent in April from 4.2 percent in March.
Analyzing the contributions to M3's annual growth, M1 contributed 2.4 percentage points, a decline from 3.0 percentage points in March, while M2-M1 contributed 0.3 percentage points, up from 0.0 percentage points.
Marketable instruments contributed 0.1 percentage points, down from 0.3 percentage points.
Private sector lending mixed
Adjusted loans to households maintained an annual growth rate of 3.0 percent in April, unchanged from the previous month.
In contrast, adjusted loans to non-financial corporations increased to 3.4 percent in April from 3.2 percent in March.
This occurred as the overall annual growth rate of total claims on euro area residents decreased to 2.0 percent from 2.4 percent.
Regarding deposit holding sectors, household deposits grew by 2.9 percent annually, remaining stable.
However, deposits from non-financial corporations decreased to 3.8 percent from 4.2 percent, and deposits placed by investment funds other than money market funds saw a significant drop to -5.7 percent in April from 3.1 percent in March.
Monetary slowdown continues
The overall slowdown in M3 and M1 growth indicates a continued normalization of monetary dynamics, consistent with the ECB's efforts to curb inflation.
While the decline in M1 is notable, the stability in household lending and increase in corporate lending suggest underlying economic activity is not collapsing.
This data provides the ECB with room to maintain its current policy stance, as disinflationary trends appear to be taking hold without stifling credit provision.