5260.0.55.001 - Information paper: Experimental Estimates of Industry Multifactor Productivity, 2007

ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 07/09/2007 First Issue

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Contents >> Manufacturing >> Capital inputs

CAPITAL INPUTS

Capital services estimates for the Manufacturing industry have a continual upward trend for the period 1985-86 to 2005-06 (figure 5.2). The growth in capital services over the period 1985-85 to 2005-06 has been driven by the additional capital stock available for use in production.

Investment (as measured by gross fixed capital formation (GFCF)) drives the increases in the productive capital stock. There were large increases in GFCF for both industrial machinery and equipment and non-dwelling construction in recent years (figure 5.3).

5.3 Manufacturing gross fixed capital formation, Chain volume measures (a)
Graph: 5.3 Manufacturing gross fixed capital formation, Chain volume measures (a)

Graph: 5.3 Manufacturing gross fixed capital formation, Chain volume measures (a)

The additional industrial machinery and non-dwelling construction contribute 50% in terms of rental price weights (figure 5.4). For instance, in 2005-06 these two assets contributed 3.1 percentage points to the 4.8% growth in the industry's capital services.

5.4 Manufacturing rental price weights (a)
Graph: 5.4 Manufacturing rental price weights (a)

These increases in GFCF are also reflected in figure 5.5, where growth in the productive capital stock appears to have accelerated in recent years. In particular there has been a rapid rise in the productive capital stock of computers and software.

5.5 Manufacturing productive capital stock (2004-05 = 100)
Graph: 5.5 Manufacturing productive capital stock (2004-05 = 100)