6427.0 - Producer Price Indexes, Australia, Dec 2017 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 02/02/2018   
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STAGE OF PRODUCTION COMMENTARY


STAGE OF PRODUCTION (SOP) OVERVIEW

In the December quarter 2017, the Final demand index rose 0.6%, the Intermediate demand index rose 1.2% and the Preliminary demand index rose 1.2%. Through the year to the December quarter 2017, the Final demand index rose 1.7%, the Intermediate demand index rose 3.1% and the Preliminary demand index rose 3.0%.

The rise of 0.6% in the Final demand index in the December quarter 2017 reflected a rise of 0.5% in the prices of domestically produced products and a rise of 0.6% in the prices of imported products.

The domestic component recorded rises in the prices for Heavy and civil engineering construction (+0.7%), Petroleum refining and petroleum fuel manufacturing (+12.8%) and Building construction (+0.4%). Partly offsetting these rises were falls in the prices for Sugar and confectionery manufacturing (-6.2%) and Sheep, beef cattle and grain farming; and dairy cattle farming (-3.6%).

The imports component recorded rises in the prices for Petroleum refining and petroleum fuel manufacturing (+9.8%), Cleaning compound and toiletry preparation manufacturing (+7.3%) and Other transport equipment manufacturing (+1.3%). Partly offsetting these rises were falls in the prices for Tobacco product manufacturing (-3.8%), Seafood processing (-3.2%) and Professional and scientific equipment manufacturing (-0.8%).

The rise of 1.2% in the Intermediate demand index in the December quarter 2017 reflected a rise of 1.2% in the prices of domestically produced products and a rise of 1.6% in the prices of imported products.

The domestic component recorded rises in the prices for Electricity, gas and water supply (+2.9%), Petroleum refining and petroleum fuel manufacturing (+13.8%) and Basic non-ferrous metal manufacturing (+8.9%). Partly offsetting these rises were falls in the price for Sugar and confectionery manufacturing (-10.2%), Textile, clothing, footwear and leather manufacturing (-0.7%) and Meat and meat product manufacturing (-0.2%).

The imports component recorded rises in the prices for Oil and gas extraction (+20.4%), Petroleum refining and petroleum fuel manufacturing (+9.6%) and Electronic equipment manufacturing (+2.4%). Partly offsetting these rises were falls in the prices for Textile, clothing, footwear and leather manufacturing (-1.6%), Motor vehicle and part manufacturing (-2.7%) and Other basic chemical product manufacturing (-6.5%).

The rise of 1.2% in the Preliminary demand index in the December quarter 2017 reflected a rise of 1.1% in the prices of domestically produced products and a rise of 1.7% in the prices of imported products.

The domestic component recorded rises in the prices for Electricity, gas and water supply (+2.9%), Petroleum refining and petroleum fuel manufacturing (+14.1%) and Basic non-ferrous metal manufacturing (+8.7%). Partly offsetting these rises were falls in Metal ore mining (-3.2%), Sugar and confectionery manufacturing (-10.1%) and Fabricated metal product manufacturing (-0.9%).

The imports component recorded rises in the prices for Oil and gas extraction (+20.5%), Petroleum refining and petroleum fuel manufacturing (+10.3%) and Basic non-ferrous metal manufacturing (+9.0%). Partly offsetting these rises were falls in the prices for Textile, clothing, footwear and leather manufacturing (-1.5%), Professional and scientific equipment manufacturing (-3.7%) and Motor vehicle and part manufacturing (-3.2%).

Comparison of SOP indexes
Graph: Comparison of SOP indexes