Echoing trends elsewhere, Eurozone June money supply numbers were disappointing, with the narrow M1 and broad M3 measures falling by 0.6% and 0.4% respectively from May. Earlier M1 strength suggests a respectable economic recovery during the second half but this could fade at year-end if June monetary weakness extends into the current quarter.

Six-month growth of real M1 remains solid by historical standards but has slipped back to its lowest since February.


M1 comprises physical cash and overnight deposits; a country breakdown is available for the latter. Lower six-month growth in real deposits in June reflected falls in both the core and periphery.


Real deposit growth declined in all four major economies in June while remaining consistent with economic expansion. Dispersion across the four is low by the standards of recent years, suggesting less economic “divergence”.