Link | According to the ECB yesterday, the M3 monetary aggregate in the eurozone increased by 0.4% year-on-year in July (+0.6% in June) to €15.6 trillion, thus exceeding the expectations of FactSet consensus analysts, who expected it to remain unchanged in the month (0.0%).
The total amount of loans in the eurozone increased at a year-on-year rate in July by 1.30%, slightly below the 1.7% increase in June and the 1.4% expected by analysts. In turn, the total volume of loans to non-financial corporations rebounded by 2.2% in July in the eurozone, compared to 3.0% in June and 2.5% expected by the analysts’ consensus.
Overall credit growth to the private sector, which covers both households and non-financial corporations, slowed in July to 1.6%, its weakest pace since June 2016.
Assessment: in line with the ECB’s inflation target, both the growth of the M3 monetary aggregate and the volume of credit to the private sector continued to slow in July. This is already being reflected in the region’s economic growth, which continues to weaken at a rapid pace.