Eurozone broad money M3 slowed further in September – annual growth fell to 1.8% from 2.6% in August while M3 rose by just 0.8% annualised over the last three months. As in other major countries, however, headline broad money numbers probably understate monetary support for an economic recovery.

A key reason for a more hopeful view is the continued strength of narrow money M1 – up by 12.8% in the year to September and by 16.9% annualised over the last three months.

Secondly, the M3 slowdown has been exaggerated by weakness in financial companies' money holdings – less likely to be reflected in spending decisions. M3 held by households and non-financial corporations rose by an annual 5.0% in September, well above the 1.8% headline rate.

Thirdly, the non-financial corporate liquidity ratio – M3 deposits divided by bank loans of less than five years' maturity – continues to recover rapidly, suggesting improving prospects for business spending. This echoes trends in other major economies – see chart. (The UK publishes September monetary data on Thursday.)