« Is the UK output gap 2% not 7%? | Main | US money base pick-up suggesting market recovery »

Eurozone corporate liquidity improving fast

Posted on Friday, January 29, 2010 at 12:59PM by Registered CommenterSimon Ward | CommentsPost a Comment

Eurozone broad money M3 fell by an annual 0.2% in December but the decline was entirely due to a contraction in financial institutions' money holdings: M3 held by households and non-financial corporations rose by 3.6% – see first chart.

Within non-financial M3, corporate money growth picked up further to an annual 5.5%. With debt repayment continuing, measures of the corporate liquidity ratio have surged, suggesting improving prospects for business investment and hiring – second chart.



PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>
Alert
Comment Moderation Enabled
Your comment will not appear until it has been cleared by a website editor.