GERMAN MONEY SUPPLY GROWTH SLOWS IN FEBRUARY West Germany's money supply growth slowed in February after January's sharp rise but the trend is still definitely upward, the Bundesbank said in a statement. Growth in the traditionally broad M3 aggregate was only moderate in February. While cash in circulation, deposits with statutory withdrawal notice and sight deposits grew sharply, short-term time deposits fell after expanding unusually strongly in January. In the six months to February, M3, which excludes holdings of German non-banks abroad, grew at a seasonally adjusted annual rate of 8.5 pct after 9.8 in the six months to January. Compared with February 1986, M3 rose 7-1/2 pct. In the six months to February, M2, which excludes time deposits with statutory withdrawal notice, rose at a seasonally adjusted annual rate of 8.8 pct and M1, which consists of cash and sight deposits, rose seven pct. International transactions of non-banks again led to a significant inflow of funds, the Bundesbank said. Net claims of commercial banks and the Bundesbank against foreigners, refecting these foreign payments, increased by 9.1 billion marks in February, little changed from January's rise. But in contrast to January, the dampening effect of the inflow on domestic credit demand outweighed the expansionary effect on money growth, the Bundesbank said. Outstanding bank credits to companies and private individuals remained virtually unchanged in February. A sharp drop in short-term company credits, which reflected the foreign funds inflow, was balanced by a moderate rise in long-term credits and a sharp rise in credits for securities. At the end of February total bank credits to the private sector were 4-1/2 pct above the February 1986 level. The effect of public authority cash movements on the money supply was slightly expansive, the Bundesbank said. Although banks acquired large amounts of public authority paper, public authorities drew down book credits at commercial banks and the Bundesbank. Capital formation strengthened in February and slowed money supply growth to a larger extent than in January. A total of 7.7 billion marks in long-term funds was placed with banks after 6.6 billion the previous month.