Euro Area Money Supply M3

M3 money supply in the Euro Area fell by 1% year-on-year to EUR 16 trillion in October 2023, after a 1.2% decrease in the prior month and compared with market forecasts of a 0.9% drop. It was the fourth consecutive month of decline in M3 money supply, as the narrower aggregate M1, comprising currency in circulation and overnight deposits came at -10% in October, compared with -9.9% in September. The annual growth rate of short-term deposits other than overnight deposits eased to 21.4% in October from 21.9% in September. Deposits placed by households decreased 0.2% and those placed by non-financial corporations went down 2.4%. Regarding the holding sectors, deposits placed by households fell 0.5% in October (vs -0.3% in September), while deposits placed by non-financial corporations slumped 2% (vs -1.3% in September). Lastly, deposits placed by non-monetary financial corporations which exclude insurance corporations and pension funds shrank 10.7% (vs -16.3% in September).

M3 money supply in the Euro Area decreased 0.4 percent year-on-year to EUR 15.6 trillion in July 2023, easing from a 0.6 percent rise in June and missing market expectations of flat reading. It was also the first month of decline in M3 money supply since May 2010, as the narrower aggregate M1, comprising currency in circulation and overnight deposits came at -9.2%, compared with -8.0% in the previous period. The annual growth rate of short-term deposits other than overnight deposits slowed to 23.9% from 24.0% in June, while the growth of marketable instruments dropped to 20.6% from 22.8%.