Economist: The Expansion of French Manufacturing May Be Short-Lived as Demand in the Services Sector Has Already Been Hit Hard

```htmlAccording to Golden Ten Data on May 6, Joe Hayes, Chief Economist at S&P Global Market Intelligence, stated that in April, the services and manufacturing sectors pulled the French economy in different directions. However, we perhaps should not take the factory expansion too seriously, as this growth is likely to be fleeting, being caused by advance ordering before expected price increases. On the other hand, with rising uncertainty, demand for services has taken a significant hit, causing economic activity in that sector to weaken. Interestingly, despite a sharp surge in input price inflation for the services sector, prices charged by service providers have barely changed since February. In the face of sluggish sales, service providers may be reluctant to further undermine demand. Businesses likely also hold the expectation that this wave of inflation won't last, meaning they are currently tolerating a squeeze on profit margins.```