Euro Area Credit Recovery Accelerates Amid Broad Money Supply Growth

The euro area's credit recovery continues to gain momentum in July 2026. According to figures from the European Central Bank (ECB), business loans increased by a significant 4.4% year-on-year, surpassing June's figure of 4.0%. Household loans also saw growth, albeit at a slower pace, with a 3.1% year-on-year rise compared to 3.0% in June.

The ECB data shows that the broad money supply, measured by the 'M3' aggregate, grew by 3.4% year-on-year, matching June's rate of 3.3%. This increase confirms the gradual credit recovery observed in June, as stated in a previous report (see EUROPE 13917/1).