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84762
Further decrease in money supply growth
statistikk
2012-07-02T10:00:00.000Z
Banking and financial markets
en
m2, The money supply M2, money, notes and coins, assetsFinancial indicators, Banking and financial markets
false

The money supply M2, May 2012

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Further decrease in money supply growth

The twelve-month growth in total money supply (M2) was 2.9 per cent to end-May, down from 4.6 per cent to end-April. The decrease stems from non-financial and other financial enterprises.

The total money supply amounted to NOK 1 703 billion at end-May, down from NOK 1 718 billion at end-April.

Increase in money supply growth for households

Households’ money supply constitutes more than half of the total money supply. At end-May it accounted for NOK 923 billion, down from NOK 929 billion the previous month. The twelve-month growth in households’ money supply increased from 7.4 per cent to end-April to 7.7 per cent to end-May.

The growth in households’ money supply was higher than the growth in households’ gross domestic debt, which amounted to 7.1 per cent to end-May, according to the credit indicator C2 . For more information on the financial position of households, see the financial accounts in the national accounts .

Money supply (M2) - growth

Decrease in the money supply growth for non-financial enterprises

Non-financial enterprises’ money supply amounted to NOK 528 billion at end-May, down from NOK 540 billion at end-April. The twelve-month growth decreased from 1.2 per cent to end-April to -2.8 per cent to end-May. Non-financial enterprises’ money supply constituted 31 per cent of the total money supply and approximately 39 per cent of their gross domestic debt measured by the credit indicator C2 at end-April.

Unchanged money supply growth for municipal government

Municipal government’s money supply amounted to NOK 80 billion at end-May, up from NOK 74 billion the previous month. The twelve-month growth rate was 5.4 per cent to end-May, unchanged from the previous month.

Decrease in the growth for other financial enterprises

Other financial enterprises’ money supply amounted to NOK 171 billion at end-May, down from NOK 176 billion at end-April. The twelve-month growth was -5.4 per cent to end-May, down from 0.6 per cent the previous month.

Monetary aggregates, growth (per cent)
  November 2011 December 2011 Januar 2012 Februar 2012 Mars 2012 April 2012 May2012
M0 - 12 mth. 28.1 9.8 35.9 -5.1 -13.8 -0.4 -19.7
M1 - 12 mth. 5.9 4.5 5.5 5.4 5.8 3.7 1.0
M2 - 12 mth. 6.8 6.0 5.9 6.2 6.1 4.6 2.9
M2 - 3 mth. moving average1 5.5 4.5 3.9 6.0 6.4 2.8  
M2 households - 12 mth. 6.6 7.5 7.3 7.3 7.7 7.4 7.7
M2 non-financial enterprises - 12 mth. 5.3 4.5 3.5 4.7 3.7 1.2 -2.8
1  Annualised figure.

Composition of money supply

The broad monetary aggregate M2 amounted to NOK 1 703 billion at end-May, of which the major part, 91.5 per cent, consisted of bank deposits. In comparison, notes and coins only accounted for 2.7 per cent. The rest of the broad monetary aggregate consisted of shares in money market funds and certificates of deposits, which accounted for 5.5 and 0.2 per cent respectively.

Base money decrease

Base money (M0) amounted to NOK 77 billion at end-May, down from NOK 86 billion the previous month. The twelve-month growth in M0 increased from -0.4 per cent to end-April to -17.7 per cent to end-April.

New institutional sector classification

As from 1 January 2012, the Norwegian institutional sector classification has been revised in line with the international classification. This change implies a break in the statistics for the money supply (M2) from March 2012.

As a result of the new classification, a number of enterprises that used to be classified as non-financial enterprises are now classified as financial enterprises. In addition, some private quasi-unincorporated enterprises that used to be in the household sector are now classified as non-financial enterprises. Further, non-profit institutions serving households will be included in the household sector. Consequently, the new sector classification will not have an impact on the total M2, but rather on the distribution within the money holding sector. Based on data from the relevant enterprises, Statistics Norway has estimated and corrected transactions and growth rates. However, it should be noted that there is some uncertainty associated with the changes in sector classification between February 2012 and March 2012.