Brussels, Belgium (4E) – The growth of money supply in the euro area expanded in May, though lending to the private sector continue to fall from the previous year, according to the European Central Bank statement released Monday.
The broad M3 money supply advanced 1 percent in May from the same month in 2013, compared with a 0.7 percent gain in April. The figure also surpassed analysts’ consensus view of 0.8 percent. Meanwhile, growth in M1 slowed to 5 percent from 5.2 percent in April.
In the period from March to May, the three-month average of the M3 annual growth rates stood at 0.9 percent, following a 1 percent rate in the three-month period from February to April.
On an annual basis, loans to the private sector fell 2 percent, higher compared with the 1.8 percent decline in April. Lending to households dropped 0.7 percent compared to the flat growth rate recorded in April.