Euro Area M3 Growth Slows

The Euro Area’s M3 money supply rose by 2.8% year-on-year to a new record high of €17.23 trillion in December 2025, following a 3% increase in November and below market estimates for 2.8% growth. The narrower aggregate M1, which comprises currency in circulation and overnight deposits, increased 4.7%, below 5% in the previous month. Meanwhile, short-term deposits other than overnight deposits (M2-M1) fell 0.4% in December, compared with a 0.8% fall in November. Marketable instruments (M3-M2) were down 1%, after a 1.5% rise in November.

The Euro Area’s M3 money supply rose by 3% year-on-year to a fresh peak of €17.2 trillion in November 2025, following a revised 2.9% increase in October and above market estimates for 2.7% growth. The narrower aggregate M1, which comprises currency in circulation and overnight deposits, decreased to 5% in November from 5.2% in October. Meanwhile, short-term deposits other than overnight deposits (M2-M1) fell at a slower 0.8% in November, compared with a 1.8% decline in October. The annual growth rate of marketable instruments (M3-M2) increased to 1.6% in November from 1.4% in October.

The Euro Area’s M3 money supply rose 2.8% year-on-year to a record €17.09 trillion in October 2025, matching September’s pace and in line with market expectations. The narrower M1 aggregate, which includes currency in circulation and overnight deposits, saw its annual growth accelerate to 5.2% in October from 5.0% in September. Meanwhile, short-term deposits excluding overnight accounts (M2–M1) fell at a slower pace, with an annual rate of -1.8% compared with -2.1% in September. In contrast, the growth of marketable instruments (M3–M2) slowed to 1.9% in October, down from 4.3% the previous month. This mixed performance highlights continued expansion in the most liquid components of the money supply, while broader medium-term instruments showed a notable slowdown.