Eurozone M3 money supply growth misses expectations, slows slightly in September

Eurozone money supply growth continued to grow at a steady rate in September, data from the European Central Bank showed Thursday. Data showed that European Central Bank's M3 money supply indicator grew 5.0 percent on the year in September after 5.1 percent in August. Data missed forecasts for an unchanged reading of 5.1 percent.

Details of the report showed the growth rate in private-sector loans was also slightly below expectations with an unchanged figure of 1.8 percent compared with an expected figure of 1.9 percent. The annual growth rate of loans to non-financial corporations was also unchanged at 1.9 percent.

The overall rate of money supply growth is still sufficient to support growth in the Eurozone economy, but is lower than the ECB hoped, suggesting that the central bank’s stimulus measures haven’t fully been transmitted into the economy. There will be some concerns within the ECB that the growth rate is not stronger.

“The ECB will likely be disappointed overall with the September eurozone lending data, particularly that loans to non-financial businesses were only flat in September,” said Howard Archer, chief U.K. and European economist at IHS Global Insight.