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Eurozone money supply growth picks up pace in January

Staff writer ▼ | February 26, 2016
Credit flowed more freely in the euro area in January, alleviating some of the recent worries surrounding the risks to the modest economic recovery.
European central bank
Europe   As measured by the M3 monetary aggregate
The Eurozone's money supply as measured by the M3 monetary aggregate accelerated from a 4.7% year-on-year pace in December to 5.0% in January, according to the European Central Bank.

Credit to euro area residents increased from the 2.4% clip seen in December to 2.6%, led by a jump in the annual growth rate of loans to general governments from 7.9% to 8.6%. However, the annual rate of growth in credit to the private sector impoved a tad, from 0.8% to 0.9%.

More significantly, loans to non-financial corporations improved from a 0.1% clip in December to 0.6% for January.

M1 growth slowed from an annual pace of 10.8% in December to 10.5% in January.