Eurozone M3 money supply rises more than expected in January

Data released by the European Central bank on Monday showed that lending to eurozone households accelerated in January, while lending growth to firms remained flat compared December.

Lending to households grew by 2.2 percent year-on-year in January compared with an annual rise of 2.0 percent in December. January's data was 2.4 percent higher month-over-month, an increase of 0.1 percentage points over the previous month. Loans to companies increased by 2.3 percent in January, the same pace as in December, the ECB said.

The M3, the ECB's indicator of broad money supply, grew 4.9 percent in January on the year, compared with 5.0 percent in December, slightly more than economists' expectations at 4.8 percent increase.

The figures meant "a largely pleasing set of news for the ECB," IHS Markit economist Howard Archer commented, representing "evidence that its monetary policy is providing valuable support to eurozone growth".

Separate data showed strong consumer confidence and business confidence readings for January, which suggests that demand for loans from businesses and households" is likely to rise going forward.