6422.0 - Information Paper: Producer Price Indexes Developments, 1999  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 25/03/1999   
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Contents >> PART B - EXPERIMENTAL INDEX NUMBERS FOR SELECTED SERVICE INDUSTRIES >> Chapter 9. The experimental index number series

9.1 Experimental index number series for each of the following ANZSIC classes are presented below, along with a brief outline of the index scope and coverage and summary of the results:

      • Road Freight Transport - ANZSIC 6110
      • Rail Transport - ANZSIC 6200 (part)
      • Grain Storage - ANZSIC 6701
      • Storage n.e.c. - ANZSIC 6709
      • Commercial Property Operators and Developers - ANZSIC 7712 (part)
      • Real Estate Agents - ANZSIC 7720 (part)
      • Motor Vehicle Hiring - ANZSIC 7741
      • Plant Hiring or Leasing - ANZSIC 7743
      • Surveying Services - ANZSIC 7822
      • Data Processing Services - ANZSIC 7831

Road Freight Transport - ANZSIC 6110

9.2 The Price Index of Road Freight Transport covers the major road freight categories such as bulk freight, express freight, refrigerated freight, etc. The index covers both short - and long - haul freight transport.

9.3 The table below shows the Price Index of Road Freight Transport for the period March quarter 1997 to June quarter 1998.


EXPERIMENTAL PRICE INDEX OF ROAD FREIGHT
- Base: March Quarter 1997 = 100.0
Year
Sep qtr
Dec qtr
Mar qtr
Jun qtr

1996 - 97
. .
. .
100.0
100.0
1997 - 98
100.0
100.8
101.8
101.5

Rail Transport - ANZSIC 6200 (part)

9.4 The index covers all the freight activities defined within ANZSIC Class 6200 Rail Transport. The passenger transport component of this class is already largely covered by the urban rail and holiday rail travel components of the Consumer Price Index. The index for the freight component represents a new collection with the results shown below.


EXPERIMENTAL PRICE INDEX OF RAIL FREIGHT TRANSPORT -
Base: Year 1989 - 90 = 100.0
Year
Sep qtr
Dec qtr
Mar qtr
Jun qtr

1990 - 91
100.1
103.3
103.4
102.4
1991 - 92
103.6
103.6
103.6
104.3
1992 - 93
104.4
105.5
105.0
104.5
1993 - 94
105.6
105.6
105.6
104.9
1994 - 95
105.0
105.3
105.3
105.0
1995 - 96
104.9
105.1
105.3
105.6
1996 - 97
104.3
103.8
104.5
104.5
1997 - 98
104.0
103.8
103.1
103.2


9.5 The index has been relatively stable over the last six years, reflecting competitive pressures in the industry, especially from road freight. The index numbers are graphed below.

      PRICE INDEX OF RAIL FREIGHT TRANSPORT
      Base: Year 1989-90 = 100.0



Grain Storage - ANZSIC 6701

9.6 The Grain Storage Index covers activities such as grain elevator operation, grain silo operation, grain storage and services related to the storage of grain. The operation of grain loading facilities at water terminals is excluded as this is classified to ANZSIC Class 6622, Water Transport Terminals.

9.7 Movements in the Price Index of Grain Storage have occurred annually (in the March quarter), largely reflecting the impact of summer crops, particularly wheat.


EXPERIMENTAL PRICE INDEX OF GRAIN STORAGE -
Base: September Quarter 1990 = 100.0
Year
Sep qtr
Dec qtr
Mar qtr
Jun qtr

1990 - 91
100.0
100.0
99.8
99.8
1991 - 92
99.8
99.8
101.5
101.5
1992 - 93
101.5
101.5
101.7
101.7
1993 - 94
101.7
101.7
101.1
101.1
1994 - 95
101.1
101.1
108.2
108.2
1995 - 96
108.2
108.2
110.6
110.6
1996 - 97
110.6
110.6
114.0
114.0
1997 - 98
114.0
114.0
113.1
113.1


9.8 Overall the index has risen by 13.1.% since September quarter 1990, with most of the increase occurring since December quarter 1994.

PRICE INDEX OF GRAIN STORAGE
Base: September quarter 1990 = 100.0



Storage n.e.c. - ANZSIC 6709

9.9 The Price Index of Storage n.e.c. directly covers the four major storage categories covered by this ANZSIC class: controlled atmosphere storage, self storage, records management and warehousing. The majority of the services priced relate to the provision of services on a long - term contract basis. The exception is self - storage operators that mainly service small domestic clients on a list price basis.

9.10 As price data have only been collected from September quarter 1996, it is not yet possible to identify a trend in the movement of storage prices. The index numbers are presented below and show an increase of 11.8% between September quarter 1996 and June quarter 1998. This was largely due to increased warehouse storage rates.


EXPERIMENTAL PRICE INDEX OF STORAGE n.e.c. -
Base: September Quarter 1996 = 100.0
Year
Sep qtr
Dec qtr
Mar qtr
Jun qtr

1996 - 97
100.0
102.7
106.4
108.1
1997 - 98
110.9
109.4
110.4
111.8

Commercial Property Operators and Developers - ANZSIC 7712 (part)

9.11 ANZSIC class 7712 (part), Commercial Property Operators and Developers, consists of businesses mainly engaged in:

      • the renting or leasing of commercial (office), retail, industrial, agricultural or pastoral property as the owner or leaseholder;
      • conference/convention centre operations; and/or
      • land subdivision and development, excluding construction.

9.12 The ABS collects data in relation to the first two activities listed above. Problems with data definition and collection have led to land subdivision and development activity being excluded from the index at this stage.

9.13 For commercial, retail and industrial property, the sample is stratified by activity and location and covers the six State capital cities and Canberra. Renting or leasing of agricultural or pastoral property has been excluded from the index as it is not significant.

9.14 The sample for conference/convention centres covers all State and Territory capitals. Hotel operations, often associated with conference/convention centres (and included with commercial property in some industry publications), are classified to different ANZSIC classes (5710 or 5720) and are thus not covered by this index.

EXPERIMENTAL PRICE INDEX OF COMMERCIAL PROPERTY OPERATORS -
Base: Year 1995 - 96 = 100.0
Year
Sep qtr
Dec qtr
Mar qtr
Jun qtr

1994 - 95
. .
. .
. .
 97.5
1995 - 96
 98.7
 99.7
100.6
101.0
1996 - 97
101.9
103.1
104.9
106.1
1997 - 98
107.6
108.2
108.8
110.2


9.15 The Price Index of Commercial Property Operators has risen by 13.0% between June quarter 1995 and June quarter 1998.

COMMERCIAL PROPERTY OPERATORS

Base: Year 1995-96 = 100.0


Real Estate Agents - ANZSIC 7720 (part)

9.16 The real estate industry in Australia divides naturally into two main sectors, residential property and commercial/industrial property. Each of these sectors has two main components: property sales and property management. Reflecting this industry structure the ABS index of real estate agents’ fees covers:

      • the sale of a residential property;
      • the management of leased residential property;
      • the sale of a commercial property; and
      • the management of leased commercial property.

9.17 The ABS collection in respect of residential property is a sample survey supplemented by direct collection from the head offices of major franchise operators. The sample of real estate agents selected was chosen from the ABS business register and relates only to the residential category of the industry. The sample on which the index is constructed is stratified by location and covers the largest five State capital cities.

9.18 The ABS has utilised data compiled by a major private commercial property management organisation to represent commercial sales and property management services. These are dominated by a few large businesses.

9.19 Between September quarter 1990 and June quarter 1998 the Price Index of Real Estate Agents’ Fees has increased by 10%.

EXPERIMENTAL PRICE INDEX OF REAL ESTATE AGENTS' FEES -
Base: Year 1989 - 90 = 100.0
Year
Sep qtr
Dec qtr
Mar qtr
Jun qtr

1990 - 91
98.2
98.0
97.4
97.2
1991 - 92
97.6
96.6
95.6
95.0
1992 - 93
94.5
94.2
94.2
94.0
1993 - 94
91.9
92.2
93.3
94.1
1994 - 95
95.3
95.4
96.1
96.0
1995 - 96
96.3
96.3
96.4
97.3
1996 - 97
97.7
98.2
99.0
100.2
1997 - 98
101.9
103.7
105.7
108.0



PRICE INDEX OF REAL ESTATE AGENTS' FEES
Base: Year 1989-90 = 100.0



Motor Vehicle Hiring - ANZSIC 7741

9.20 The Price Index of Motor Vehicle Hiring covers activities classified to ANZSIC class 7741. This class consists of ‘units mainly engaged in leasing, hiring and renting of motor vehicles from own stocks, without drivers (except licensed taxi cabs or hire cars)’. Included are all types of vehicles from passenger cars to trucks and buses, all hired or leased strictly without drivers or operators. Only operating leases are in - scope for this industry class (financial leases are included in ANZSIC class 7519, Services to Finance and Investment n.e.c.).

9.21 The Australian motor vehicle hiring and leasing industry is divided into two distinct sectors which are both represented in this index. One sector provides vehicles for temporary hire or rental, while the other supplies vehicles for leasing under long - term contractual agreements. Long - term leasing is generally undertaken by clients as an alternative to purchasing vehicles.

9.22 Between June quarter 1996 and June quarter 1998 the index for motor vehicle hiring has shown minor fluctuations with an overall slight downward trend. However, due to the different price determinants and market conditions prevailing in the long - term and the short - term sectors, analysis of the index at a disaggregated level is more indicative of industry trends.


EXPERIMENTAL PRICE INDEX OF MOTOR VEHICLE HIRING -
Base: June Quarter 1996 = 100.0

Quarter
Short-term hiring
Long-term lease

Total

1996
Jun
100.0
100.0
100.0
Sep
101.4
 98.6
 99.8
Dec
103.1
 96.4
 99.3
1997
Mar
102.6
 96.4
 99.1
Jun
102.1
 97.3
 99.4
Sep
100.5
 96.2
 98.1
Dec
101.2
 94.5
 97.4
1998
Mar
 99.7
 97.3
 98.3
Jun
103.0
 98.5
100.4


9.23 Prices in the short - term hire market are fairly volatile, mainly affected by supply and demand conditions and competitive pressure.

9.24 Price change in the long - term lease market is closely linked to changes in interest rates which are the major determinant of lease charges.


Plant Hiring or Leasing - ANZSIC 7743

9.25 This industry class consists of units mainly engaged in leasing, renting or hiring industrial machinery, plant or equipment (except transport equipment) without operators, from stock physically held for that purpose.


EXPERIMENTAL PRICE INDEX OF PLANT HIRING OR LEASING

Base: JUNE Quarter 1996 = 100.0

Year
Sep qtr
Dec qtr
Mar qtr
Jun qtr

1995 - 96
. .
. .
. .
100.0
1996 - 97
99.3
97.3
95.3
95.7
1997 - 98
93.9
90.2
90.0
95.4

Surveying Services - ANZSIC 7822

9.26 This industry class consists of units mainly engaged in providing surveying services, including exploration surveying services on contract.

9.27 As price data have only been collected from March quarter 1997, it is not yet possible to identify a trend in the series. The index numbers for the period March quarter 1997 to June quarter 1998 are shown below. The series indicates minimal change over this period.


EXPERIMENTAL PRICE INDEX OF SURVEYING SERVICES
Base: March Quarter 1997 = 100.0
Year
Sep qtr
Dec qtr
Mar qtr
Jun qtr

1996 - 97
. .
. .
100.0
99.2
1997 - 98
101.0
102.0
102.0
99.9

Data Processing Services - ANZSIC 7831

9.28 The Price Index for Data Processing Services includes data from the four major data processing groups: computer time sharing services, data entry services, data processing services and tabulating services. The majority of the services priced relate to the provision of services on a long - term contract basis.

9.29 The collection of price data commenced with the March quarter 1997. The index series for the period March quarter 1997 to June quarter 1998 are shown below. The index increased by 4.9% over the period.


EXPERIMENTAL PRICE INDEX OF DATA PROCESSING SERVICES
Base: March Quarter 1997 = 100.0
Year
Sep qtr
Dec qtr
Mar qtr
Jun qtr

1996 - 97
. .
. .
100.0
100.0
1997 - 98
99.9
102.2
103.5
104.9








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