27 May 2016

2016- n° 140

In Q1 2016, producer prices of services sold to French businesses were virtually stable Services producer price indices - 1st Quarter 2016

In the first quarter of 2016, producer prices of services sold to French businesses were almost unchanged (−0.1% following +0.3% in the previous quarter).

Prices for information and communication services faltered in Q1 (−0.5% after +1.0%). As every year at this time, prices for radio and television broadcasting services fell back strongly (−8.6%).

Prices for transportation and storage services decreased again (−0.3% after −0.8% in the previous quarter). Prices in land transport services fell, driven down by the decline in prices for gas oil and by a greater competition.

This fall was only partially offset by the rise in prices for storage services and transportation support activities.

Prices for scientific and technical services were almost unchanged this quarter (+0.1% after +2.1% in the previous quarter). The increase in prices for legal and accounting services (+0.4%) and for architectural and engineering services (+1.0%) was almost entirely offset by the decline in prices for advertising and market research services (−1.7%) and for activities of head offices and management consulting services (−1.2%).

Prices for real estate activities were also practically stable (−0.1% following +0.2%).

Prices for administrative and support services held steady in the first quarter (0.0% after +0.2% in the fourth quarter of 2015) despite some rises related to contractual and salary revaluations at the beginning of the year in services to buildings and in administrative services.

Producer prices of services sold to households in France rose slightly (+0.2% following −2.1%), as those for real estate activities (+0.3%). Prices for accommodation and food services recovered (+0.9% after −3.4%). However, prices for transportation and storage decreased (−0.5%), as those for scientific and technical services (−0.6%).

Producer prices of services sold on foreign markets fell again (−0.8% after −1.2%), driven down by prices for transportation and storage (−2.2%). Prices for air and water transport services dipped (respectively −4.9% and −4.8%) due to the fall in prices for heavy fuel oil and to a greater competition. On the contrary, prices for information and communication services recovered slightly (+0.3% after −2.8%).

In the first quarter of 2016, on all markets, services producer prices were practically stable (−0.1% after −0.5%). Year over year, they rose by 0.4%.