6427.0 - Producer Price Indexes, Australia, Mar 2010  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 27/04/2010   
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ADDITIONAL COMMENTARY


MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES

During the March quarter 2010, the prices paid by manufacturers for material inputs increased by 1.7%, while the prices they received for their outputs increased by 2.5%. Through the year to March quarter 2010, prices of material inputs decreased by 6.1%, while prices for outputs decreased by 0.2%.

Price increases for products from metal ore mining (+6.7%), agriculture (+5.0%) and primary metal and metal product manufacturing (+2.5%) drove the increases in the cost of materials used in the manufacturing industries. Major contributors to these price increases were domestic gold bullion, cattle and calves and alumina. These increases were partially offset by decreases for the prices paid for inputs from fabricated metal product manufacturing (-6.2%) and basic chemical product and chemical product manufacturing (-2.2%).

The increase in prices received for produced articles (i.e. outputs) primary to manufacturing industries was mainly due to increases in the prices of outputs primary to basic non-ferrous metal manufacturing (+10.5%), petroleum and coal product manufacturing (+8.1%) and sugar and confectionary manufacturing (+13.2%). Major contributors to these price increases were precious metal recovery, unleaded petrol and raw sugar. These increases were partially offset by decreases in the prices received for outputs primary to other food production manufacturing (-4.1%) and printing and printing support services (-2.1%).

MATERIALS USED IN MANUFACTURING INDUSTRIES, Division: Quarterly % change
Graph: MATERIALS USED IN MANUFACTURING INDUSTRIES, Division Quarterly % change


ARTICLES PRODUCED BY MANUFACTURING INDUSTRIES, Division: Quarterly % change
Graph: ARTICLES PRODUCED BY MANUFACTURING INDUSTRIES, Division Quarterly % change



CONSTRUCTION INDUSTRIES PRODUCER PRICE INDEXES

The price index of materials used in house building increased by 0.3% in the March quarter 2010. This follows an increase of 0.1% in the December quarter 2009, a decrease of 0.8% in the September quarter 2009 and an increase of 0.4% in the June quarter 2009. The most significant increases this quarter were price rises for timber, board and joinery (+0.7%), other materials (+0.9%), other metal products (+0.7%) and electrical equipment (+1.2%). These increases were partially offset by decreases for steel products (-2.0%), concrete, cement and sand (-1.5%) and plumbing products (-0.2%).

Melbourne (+0.4%) contributed the most to the overall weighted average of 6 capital cities quarterly movement, followed by Brisbane (+0.4%), Perth (+0.4%), Sydney (+0.1%) and Hobart (+0.7%). Adelaide was the only city that showed no change this quarter.

Through the year to March quarter 2010, the materials used in house building price index showed no movement. There were increases for prices paid for cement products (+3.8%), ceramic products (+2.6%), electrical equipment (+2.6%), other metal products (+1.9%), other materials (+1.9%) and plumbing products (+0.6%). The main offsetting decreases were in the prices paid for steel products (-18.3%) and concrete, cement and sand (-2.6%).

The movements in the price indexes of selected outputs primary to Division E - Construction for the March quarter 2010 were due to increases in Subdivision 30 - Building construction (+0.6%), which was mainly driven by an increase in Class 3011 - House construction (+0.8%). The increase in building construction was mainly influenced by increases for House construction in New South Wales (+1.0%), Queensland (+0.8%) and Western Australia (+1.4%).

Through the year to March quarter 2010, the Subdivision 30 - Building construction price index increased by 0.7%. Increases for prices paid for Class 3011 - House construction (+4.0%) were partially offset by decreases in prices paid for Class 3019 - Other residential construction (-2.5%) and Class 3020 - Non-residential construction (-2.3%).

The price index of outputs primary to Class 3101 - Road and bridge construction increased by 0.4% in the March quarter 2010 driven by increases in New South Wales (+0.7%) and Queensland (+0.6%).

Through the year to March quarter 2010, Class 3101 - Road and bridge construction price index increased by 1.7%.

MATERIALS USED IN HOUSE BUILDING, All groups: Quarterly % change
Graph: MATERIALS USED IN HOUSE BUILDING, All groups Quarterly % change


SELECTED OUTPUT PRIMARY TO BUILDING CONSTRUCTION, All groups: Quarterly % change
Graph: SELECTED OUTPUT PRIMARY TO BUILDING CONSTRUCTION ,  Quarterly % change



SERVICE INDUSTRIES PRODUCER PRICE INDEXES

SELECTED OUTPUT OF DIVISION I - TRANSPORT, POSTAL AND WAREHOUSING

The price indexes of selected services primary to Division I - Transport, postal and warehousing recorded increases for the March quarter 2010 in Group 471 - Rail freight transport (+2.7%), Group 481 - Water freight transport (+2.1%), Class 5021 - Pipeline transport (+1.5%), Class 5219 - Other water transport support services (+3.0%), Class 5102 - Courier pick-up and delivery services (+1.2%), Group 522 - Airport operations and other support services (+0.4%), Group 461 - Road freight transport (+0.1%) and Class 5212 - Port and water terminal operations (+0.3%).


SELECTED OUTPUT OF DIVISION J - INFORMATION MEDIA AND TELECOMMUNICATIONS

The price indexes of selected services primary to Division J - Information media and telecommunication recorded a price increase for the March quarter 2010 in Group 541 - Newspaper, periodical, book and directory publishing (+0.3%), driven by newspaper advertising and Group 592 - Data processing, web hosting and electronic information storage services (+1.0%), driven by data processing services.


SELECTED OUTPUT OF DIVISION L - RENTAL HIRING AND REAL ESTATE SERVICES

The price indexes of selected services primary to Division L - Rental, hiring and real estate services for the March quarter 2010 recorded price decreases in Subdivision 66 - Rental and hiring services (except real estate) (-0.8%). This was driven by price decreases in Group 661 - Motor vehicle and transport equipment rental and hiring (-1.3%), Group 663 - Other goods and equipment rental and hiring (-0.5%). Class 6712 - Non-residential property operators recorded a decrease (-0.4%). Group 672 - Real estate service recorded an increase (+2.9%).


SELECTED OUTPUT OF DIVISION M - PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES

The price indexes of selected services primary to Division M - Professional, scientific and technical services recorded price increases for the March quarter 2010 in Group 695 - Market research and statistical services (+3.0%) and Group - 691 Scientific research services (+1.0%). Price increases also occurred for Group 700 - Computer system design and related services (+0.4%) and Group 692 - Architectural, engineering and technical services (+0.2%). Division M recorded a price decrease in Group 693 - Legal and accounting services (-0.2%).


SELECTED OUTPUT OF DIVISION N - ADMINISTRATIVE AND SUPPORT SERVICES

The price indexes of selected services primary to Division N - Administrative and support services recorded an increase for the March quarter 2010 in Group 721 - Employment services (+1.4%), driven by recruitment services. An increase was also recorded in Group 731 - Building cleaning, pest control and gardening services (+1.0%), driven by commercial building/office cleaning and education cleaning.


SELECTED OUTPUT OF DIVISION O - PUBLIC ADMINISTRATION AND SAFETY

The price index for selected services primary to Division O - Public administration and safety recorded an increase for the March quarter 2010 in Class - 7712 Investigation and security services (+0.5%), driven by price increases for security guard services.


SELECTED OUTPUT OF DIVISION S - OTHER SERVICES

The price index for selected services primary to Division S - Other services recorded an increase for the March quarter 2010 in Class 9533 - Parking services (+1.0%).