The latest report from the National Institute of Statistics and Economic Studies (INSEE) sheds light on the producer price indices of services sold to French businesses, presenting a combination of positive and negative trends in the first quarter of 2023.
Services Sold to Households: Rebound of 0.7% During the first quarter, the prices of services sold to households in France experienced a rebound of 0.7% compared to the previous quarter. This growth was primarily driven by a seasonal increase in prices for accommodation and food service activities, which rose by 1.2%. Additionally, real estate activities saw a 0.9% acceleration in prices. Information and communication services also rebounded, with a 0.7% increase. However, the prices of transportation and storage services remained nearly unchanged, showing a marginal increase of 0.1%. On a year-on-year basis, the producer prices of services sold to households in France witnessed a slight acceleration, reaching a growth rate of 4.7% and surpassing the levels of the first quarter of 2021 by 7.3%.
Services Sold on Foreign Markets: Decline of 4.1% The first quarter of 2023 saw a notable decline in exported services producer prices, with a decrease of 4.1%. This decline was primarily driven by a significant fall in prices for transportation and storage services, which dropped by 12.5%. In particular, sea and coastal freight water transport services experienced a substantial decrease of 22.9%, largely due to weakened demand and persistently high fuel costs. Furthermore, prices for administrative and support service activities declined by 0.5% after eight consecutive quarters of growth. However, there was a positive trend in prices for professional, scientific, and technical activities, which rebounded by 1.5%. Prices for information and communication services remained relatively stable, with a slight increase of 0.1%. Despite the quarterly decline, exported services producer prices were still approximately 6.5% higher than the levels recorded in the first quarter of 2021.
The latest data on producer price indices of services sold to French businesses reveals a complex landscape, with certain sectors experiencing growth while others face challenges. The rebound in prices for services sold to households indicates an overall positive trend, while the decline in exported services highlights the impact of various factors on international markets. These figures provide valuable insights into the economic landscape of France and its services sector in the first quarter of 2023.