The annual growth rate of the broad monetary aggregate M3 rose to 3.2 per cent in May 2026, up from 2.7 per cent in April, according to a report from the European Central Bank (ECB).
This development reflects a broader expansion in liquidity across the euro area as economic conditions evolve.
The narrower monetary aggregate M1, which includes currency in circulation and overnight deposits, also saw an increase, reaching 4.0 per cent in May compared with 3.8 per cent in April.
Growth in short-term deposits other than overnight deposits climbed to 1.4 per cent, while marketable instruments experienced a significant rise to 3.2 per cent.
Regarding the holding sectors of deposits, the growth rate for household deposits remained steady at 2.9 per cent for the second consecutive month.
In contrast, the annual growth rate for deposits by non-financial corporations strengthened to 4.2 per cent in May, rising from 3.8 per cent in April.
Investment funds other than money market funds saw a growth rate of -0.4 per cent, which represents a notable improvement from the -5.8 per cent recorded in the previous month.
The data further highlighted an increase in lending to the private sector, with the annual growth rate of adjusted loans to the private sector rising to 3.9 per cent in May from 3.5 per cent in April.
Within this segment, adjusted loans to households grew by 3.1 per cent, while adjusted loans to non-financial corporations accelerated to 4.0 per cent, up from 3.4 per cent in April.
The ECB reported that total claims on euro area residents increased by 2.4 per cent in May, driven by higher claims on both the private sector and the general government.
