updated 11/28/2012 4:18:12 AM ET 2012-11-28T09:18:12

FRANKFURT (Reuters) - Annual growth in the M3 broad money supply measure accelerated in the euro zone by far more than expected to 3.9 percent in October, but loans to firms and households still contracted.

The M3 money supply - a broad measure of cash in the economy - picked up from a downwardly revised reading of 2.6 percent in September, data released by the European Central Bank showed on Wednesday. The consensus in a Reuters poll of analysts was for a reading of 2.8 percent for October.

Loans to the private sector fell 0.7 percent from the same month a year ago, coming in above the expectations of economists polled by Reuters for a drop of 0.9 percent.

(Writing by Eva Kuehnen)

(c) Copyright Thomson Reuters 2012. Check for restrictions at: http://about.reuters.com/fulllegal.asp

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