Output of the Manufacturing Industries (Price Index of)
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NAME OF ORGANISATION
· to support inflation monitoring and analysis of the economy as a whole; and
· for contract adjustment purposes ie as the basis for "rise" and "fall" clauses in legal contracts.
Prior to the September quarter 2009, the Output of the Manufacturing industries indexes were constructed on a net sector basis with intra–sector transactions netted out.
From the September quarter 2009 onwards the output of the Manufacturing industries indexes measures changes in the prices of products that are classified to ANZSIC 2006 Manufacturing industries that are sold or transferred to domestic establishments within or outside the Manufacturing industries for further processing, intermediate use or used as capital equipment or exported.
The Output of the Manufacturing Industries indexes measure the changes in prices for a fixed list of output of the Australian manufacturing industry. The indexes are compiled as fixed, base weighted price indexes of the Laspeyres form.
From the September quarter 2012 the Output of the Manufacturing Industries price indexes relate to all products that are produced by establishments classified, according to ANZSIC 2006, to a specific industry, including secondary production.
Prior to the September quarter 2012, the Output of the Manufacturing Industries price indexes related to produced products primary to a specific industry.
Primary products are defined as products which are strictly classified to a particular industry, as defined by the Australian and New Zealand Standard Industrial Classification, 2006 edition (ANZSIC 2006). The production of products outside these strict industry classifications are considered as secondary production.
The Manufacturing industry is defined to be establishments classified to the Manufacturing Division of the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 edition.
The Output of the Manufacturing Industries is:
· a measure of changes in transaction prices (price actually paid, not the list or recommended price)
· a chain of linked indexes with changes in composition and weighting made at regular intervals.
In the September quarter 2012, the indexes were re–weighted based on the Australian National Accounts: Input–Output Tables – Electronic Publication, 2007–08 Final (cat. no. 5209.0.55.001).
The index structures and weighting patterns for the Manufacturing industries input and output ANZSIC 2006 division indexes are presented in the Information Paper: Producer Price Indexes Weighting Patterns, 2012 (cat. no. 6427.0.55.006). Index structures and weighting patterns for the associated ANZSIC 2006 subdivisions and groups are available from the ABS website <http://www.abs.gov.au> as data cubes in that information paper.
The index reference period for each index series is: 2011–12 = 100.0.
From the September quarter 2012, the indexes represent an industry, rather than a product (primary to an industry) view.
The indexes are compiled on a quarterly basis with, in concept, the indexes measuring the change between the average price levels of one quarter and the average price levels of the next quarter. They do not measure price changes between any one date and any other date. In practice, however, it is not possible for most items to collect actual average quarterly prices and prices collected over the quarter are used to represent quarterly average prices.
The indexes measure changes in ex-factory prices, excluding Goods and Services Tax (GST) and excise. Prices used in compiling the indexes are actual transaction prices ie prices net of discounts and rebates.
The indexes are measures of "pure price" change (ie price change excluding the effects of any change in the quality or quantity of the articles priced). The objective is to measure each quarter the change in price for the identical "basket" of articles as priced in the previous quarter.
Price indexes are published for the Manufacturing Division and for Manufacturing Subdivisions and/or Groups.
Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 edition.
Other concepts (summary)
All concepts have been noted in Conceptual Framework.
Comments and/or Other Regions
Information collected is sourced from across Australia but is not State specific.
Up to, and including, June 1997 collection was monthly. From that date collection is quarterly.
June 1976 - First published with indexes compiled from July 1968 on a reference base of 1968-69 = 100.0.
May 1990 - second series introduced on a reference base of 1988-89 = 100.0
September quarter 1997 - series changed from monthly to quarterly
September quarter 2000 - third series introduced on a reference base of 1989-90 = 100.0.
In the September quarter 2012, the indexes were re–weighted based on the Australian National Accounts: Input–Output Tables – Electronic Publication, 2007–08 Final (cat. no. 5209.0.55.001) and re-referenced to a new index reference period of 2011–12 = 100.0.
Data availability comments
All available Data is published in the Producer Price Indexes, Australia (ABS Cat. no. 6427.0) and is available on the ABS web site <www.abs.gov.au>.
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