Monetary developments in the euro area: September 2024

PRESS RELEASE

Monetary developments in the euro area: September 2024

25 October 2024

Annual growth rate of broad monetary aggregate M3 increased to 3.2% in September 2024 from 2.9% in August
Annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, was -1.2% in September, compared with -2.1% in August
Annual growth rate of adjusted loans to households stood at 0.7% in September, compared with 0.6% in August
Annual growth rate of adjusted loans to non-financial corporations increased to 1.1% in September from 0.8% in August

Components of the broad monetary aggregate M3

The annual growth rate of the broad monetary aggregate M3 increased to 3.2% in September 2024 from 2.9% in August, averaging 2.8% in the three months up to September. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, was -1.2% in September, compared with -2.1% in August. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 9.7% in September from 10.4% in August. The annual growth rate of marketable instruments (M3-M2) decreased to 21.8% in September from 22.3% in August.

Chart 1

Monetary aggregates

Data for monetary aggregates

Looking at the components' contributions to the annual growth rate of M3, the narrower aggregate M1 contributed -0.8 percentage points (up from -1.4 percentage points in August), short-term deposits other than overnight deposits (M2-M1) contributed 2.8 percentage points (down from 2.9 percentage points) and marketable instruments (M3-M2) contributed 1.3 percentage points (as in the previous month).

Among the holding sectors of deposits in M3, the annual growth rate of deposits placed by households increased to 2.8% in September from 2.3% in August, while the annual growth rate of deposits placed by non-financial corporations decreased to 1.6% in September from 1.8% in August. Finally, the annual growth rate of deposits placed by investment funds other than money market funds increased to 11.9% in September from 11.7% in August.

Counterparts of the broad monetary aggregate M3

The annual growth rate of M3 in September 2024, as a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), can be broken down as follows: net external assets contributed 3.9 percentage points (down from 4.0 percentage points in August), claims on the private sector contributed 1.1 percentage points (as in the previous month), claims on general government contributed -0.5 percentage points (down from -0.4 percentage points), longer-term liabilities contributed -1.8 percentage points (as in the previous month), and the remaining counterparts of M3 contributed 0.5 percentage points (up from 0.0 percentage points).

Chart 2

Contribution of the M3 counterparts to the annual growth rate of M3

Data for contribution of the M3 counterparts to the annual growth rate of M3

Claims on euro area residents

The annual growth rate of total claims on euro area residents stood at 0.5% in September 2024, unchanged from the previous month. The annual growth rate of claims on general government stood at -1.2% in September, compared with -1.1% in August, while the annual growth rate of claims on the private sector stood at 1.2% in September, unchanged from the previous month.

The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan transfers and notional cash pooling) stood at 1.6% in September, compared with 1.5% in August. Among the borrowing sectors, the annual growth rate of adjusted loans to households stood at 0.7% in September, compared with 0.6% in August, while the annual growth rate of adjusted loans to non-financial corporations increased to 1.1% in September from 0.8% in August.

Chart 3

Adjusted loans to the private sector

Data for adjusted loans to the private sector

Notes:

Data in this press release are adjusted for seasonal and end-of-month calendar effects, unless stated otherwise.
"Private sector" refers to euro area non-MFIs excluding general government.
Hyperlinks lead to data that may change with subsequent releases as a result of revisions. Figures shown in annex tables are a snapshot of the data as at the time of the current release.

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