Eurozone Money Supply, Lending To Private Sector Growth Eases

Eurozone money supply and lending to the private sector grew at slower pace in September, data from the European Central Bank showed Monday.

The broad monetary aggregate M3 grew at a slower pace of 5.5 percent annually in September following the revised 5.8 percent increase in August. Economists had forecast an annual growth of 5.7 percent.

Likewise, the narrow measure M1 expanded 7.9 percent after rising 8.5 percent a month ago.

Data showed that annual growth in credit to euro area residents eased to 2.1 percent from 2.2 percent. Credit to the private sector gained 3.2 percent following a 3.1 percent rise in August.

Adjusted loans to the private sector increased at a slower pace of 3.7 percent compared with 3.8 percent in August.

Monetary developments provide a cautious note to the Eurozone outlook as money growth and lending to the private sector both slow, Bert Colijn, an ING economist said. Next months figures should show if this was a one-off blip or not.

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