Link Securities | As released by the European Central Bank (ECB) last Friday, the M3 monetary aggregate grew in March in the Eurozone at an annual rate of 0.9% (0.4% in February), higher than the 0.6% rate expected by FactSet consensus analysts. M3 is considered a good indicator of future economic expansion.
In addition, and in March, bank lending to households in the Eurozone rose 0.2% year-on-year compared to a 0.3% increase in the previous month. It was the slowest pace of credit growth since February 2015, as the ECB’s tightening measures implemented in recent months continued to weigh on consumer demand. In addition, credit to businesses increased by 0.4%, following a 0.3% advance in February. Overall credit growth to the private sector, which covers both households and non-financial corporations, rebounded from 0.7% to 0.8%.
