The European Central Bank (ECB) has reported that euro area money supply growth accelerated in June, while lending to households and businesses remained broadly unchanged, pointing to continued expansion in private sector credit conditions.

The ECB said the annual growth rate of the broad monetary aggregate M3 increased to 3.3 per cent in June 2026, up from 3.0 per cent in May, which was revised down from an earlier estimate of 3.2 per cent.

The three-month average growth rate of M3, covering the period up to June, stood at 3.0 per cent.

M3 is the ECB’s broadest measure of money supply and includes currency in circulation, overnight deposits, short-term deposits and marketable financial instruments.

The increase in M3 growth was supported by stronger growth in short-term deposits and marketable instruments, despite slower expansion in the narrower monetary measure M1, which includes cash in circulation and overnight deposits.

The annual growth rate of M1 fell to 3.4 per cent in June, from 3.7 per cent in May, which had previously been reported at 4.0 per cent.

Meanwhile, short-term deposits excluding overnight deposits, known as M2-M1, recorded annual growth of 2.8 per cent, up from 1.4 per cent a month earlier.

Marketable instruments, which form the remaining component of M3, recorded annual growth of 4.5 per cent in June, compared with 3.2 per cent in May.

In terms of contributions to overall M3 growth, M1 accounted for 2.2 percentage points, down from 2.4 percentage points in May.

Short-term deposits other than overnight deposits contributed 0.8 percentage points, increasing from 0.4 percentage points, while marketable instruments contributed 0.3 percentage points, up from 0.2 percentage points.

The ECB also highlighted changes in deposits held by different sectors of the economy.

The annual growth rate of deposits held by households declined slightly to 2.6 per cent in June, from 2.8 per cent in May.

By contrast, deposits held by non-financial corporations increased more rapidly, with annual growth rising to 5.3 per cent in June from 4.2 per cent the previous month.

Deposits held by investment funds excluding money market funds also recovered, with annual growth reaching 1.6 per cent, compared with a decline of 0.6 per cent in May.

Looking at the counterparts of M3, which reflect changes in other items on the consolidated balance sheet of monetary financial institutions, the ECB said claims on the private sector remained the largest contributor to money supply growth.

Claims on the private sector contributed 3.1 percentage points to annual M3 growth in June, unchanged from the previous month.

Net external assets contributed 2.2 percentage points, increasing from 1.9 percentage points in May.

Claims on general government contributed 0.1 percentage points, compared with no contribution in May.

Longer-term liabilities continued to weigh on M3 growth, contributing minus 1.6 percentage points, compared with minus 1.4 percentage points previously.

The remaining counterparts of M3 contributed minus 0.5 percentage points, improving slightly from minus 0.6 percentage points in May.

The ECB also reported that total claims on euro area residents grew at an annual rate of 2.4 per cent in June, unchanged from the previous month.

Within this category, claims on general government increased at an annual rate of 0.3 per cent, up from 0.1 per cent in May.

Claims on the private sector recorded annual growth of 3.3 per cent, remaining unchanged compared with the previous month.

The ECB said adjusted loans to the private sector, which exclude the effects of loan transfers and notional cash pooling, grew by 3.9 per cent annually in June, also unchanged from May.

Within the private sector, lending to households continued to expand at a stable pace.

The annual growth rate of adjusted loans to households stood at 3.0 per cent in June, unchanged from the previous month.

Loans to non-financial corporations also maintained their momentum, with annual growth remaining at 4.0 per cent in June.

The latest figures indicate that credit conditions in the euro area remained steady in the middle of 2026, with stronger money supply growth accompanied by continued expansion in lending to households and businesses.