ECB April 2026 Report: Euro Area Money Supply Growth Slows as Household and Business Lending Remains Strong
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| Official logo of the European Central Bank and the Eurosystem, featured in the monetary developments report for the euro area for April 2026 |
FRANKFURT AM MAIN - The latest ECB monetary developments report reveals a slowdown in euro area money supply growth during April 2026, signalling a moderation in liquidity expansion across the bloc. Despite this trend, lending to households and businesses remained resilient, underlining continued demand for credit and support for economic activity. The data provide fresh insight into the balance between monetary conditions and financing trends at a crucial stage for the euro area economy. Here are the key figures and what they mean for growth, lending and monetary policy.
Adjusted loans to non-financial corporations accelerated
On Monday, 1 June 2026, the European Central Bank (ECB) published its monetary developments report for the euro area for April 2026, highlighting a moderation in money supply growth while lending to households and businesses continued to demonstrate positive momentum. The annual growth rate of M3 , the broad monetary aggregate that measures the overall amount of money circulating in the economy, declined to 2.7% in April 2026, down from 3.2% in March. The annual growth rate of M1, which comprises currency in circulation and overnight deposits, fell to 3.8% from 4.7% in the previous month (March data revised from 4.6%). Adjusted loans to households maintained an annual growth rate of 3.0%, unchanged from March. Adjusted loans to non-financial corporations accelerated, with annual growth increasing to 3.4% in April from 3.2% in the previous month. According to the European Central Bank, these figures point to a moderation in the growth of monetary aggregates, while demand for credit from households and businesses continues to support economic activity across the euro area.
Looking at the components' contributions to the annual growth rate of M3
The annual growth rate of the broad monetary aggregate M3 decreased to 2.7% in April 2026 from 3.2% in March, averaging 3.0% in the three months up to April. 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, decreased to 3.8% in April from 4.7% in March. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) increased to 0.8% in April from -0.1% in March. The annual growth rate of marketable instruments (M3-M2) decreased to 1.1% in April from 4.2% in March. Looking at the components' contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 2.4 percentage points (down from 3.0 percentage points in March), short-term deposits other than overnight deposits (M2-M1) contributed 0.3 percentage points (up from 0.0 percentage points) and marketable instruments (M3-M2) contributed 0.1 percentage points (down from 0.3 percentage points).
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The annual growth rate of M3 in April 2026
Among the holding sectors of deposits in M3, the annual growth rate of deposits placed by households stood at 2.9% in April, unchanged from the previous month, while the annual growth rate of deposits placed by non-financial corporations decreased to 3.8% in April from 4.2% in March. Finally, the annual growth rate of deposits placed by investment funds other than money market funds decreased to -5.7% in April from 3.1% in March. The annual growth rate of M3 in April 2026, 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: claims on the private sector contributed 2.9 percentage points (down from 3.0 percentage points in March), net external assets contributed 1.9 percentage points (down from 2.5 percentage points), claims on general government contributed -0.2 percentage points (down from 0.2 percentage points), longer-term liabilities contributed -1.3 percentage points (up from -1.4 percentage points), and the remaining counterparts of M3 contributed -0.6 percentage points (up from -1.1 percentage points).
The annual growth rate of adjusted loans to the private sector
The annual growth rate of total claims on euro area residents decreased to 2.0% in April 2026 from 2.4% in the previous month. The annual growth rate of claims on general government decreased ‑0.4% in April from 0.4% in March, while the annual growth rate of claims on the private sector decreased to 3.0% in April from 3.2% in March. The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan transfers and notional cash pooling) stood at 3.5% in April, unchanged from the previous month. Within the non-financial private sector, the annual growth rate of adjusted loans to households stood at 3.0% in April, unchanged from the previous month, while the annual growth rate of adjusted loans to non-financial corporations increased to 3.4% in April from 3.2% in March.
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