6427.0 - Producer Price Indexes, Australia, Mar 2018 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 27/04/2018   
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STAGE OF PRODUCTION COMMENTARY


STAGE OF PRODUCTION (SOP) OVERVIEW

In the March quarter 2018, the Final demand index rose 0.5%, the Intermediate demand index rose 1.4% and the Preliminary demand index rose 1.5%. Through the year to the March quarter 2018, the Final demand index rose 1.7%, the Intermediate demand index rose 3.7% and the Preliminary demand index rose 3.6%.


Final Demand

The rise of 0.5% in the Final demand index in the March quarter 2018 reflected a rise of 0.5% in the prices of domestically produced products and a rise of 0.4% in the prices of imported products.

The domestic component recorded rises in the prices for Electricity, gas and water supply (+3.4%), Heavy and civil engineering construction (+0.6%), Tertiary education (+1.9%) and Building construction (+0.4%). Partly offsetting these rises were falls in the prices for Electronic equipment manufacturing (-2.6%) and Bakery product manufacturing (-2.1%).

The imports component recorded rises in the prices for Motor vehicle and parts manufacturing (+1.6%), Petroleum refining and petroleum fuel manufacturing (+7.0%) and Specialised machinery and equipment manufacturing (+1.6%). Partly offsetting these rises were falls in the prices for Pharmaceutical and medicinal product manufacturing (-4.0%), Clothing manufacturing (-1.9%) and Cigarette and tobacco product manufacturing (-2.3%).


Intermediate Demand

The rise of 1.4% in the Intermediate demand index in the March quarter 2018 reflected a rise of 1.4% in the prices of domestically produced products and a rise of 1.1% in the prices of imported products.

The domestic component recorded rises in the prices for Electricity, gas and water supply (+6.8%), Petroleum refining and petroleum fuel manufacturing (+6.7%) and Employment services (+1.6%). Partly offsetting these rises were falls in the price for Other agriculture (-3.4%), Grain mill and cereal food manufacturing (-3.0%) and Other machinery and equipment manufacturing (-2.6%).

The imports component recorded rises in the prices for Petroleum refining and petroleum fuel manufacturing (+7.8%), Oil and gas extraction (+10.3%) and Professional and scientific equipment manufacturing (+6.0%). Partly offsetting these rises were falls in the prices for Textile, clothing, footwear and leather manufacturing (-3.0%), Polymer product manufacturing (-4.7%) and Other basic chemical product manufacturing (-10.6%).


Preliminary Demand

The rise of 1.5% in the Preliminary demand index in the March quarter 2018 reflected a rise of 1.6% in the prices of domestically produced products and a rise of 1.2% in the prices of imported products.

The domestic component recorded rises in the prices for Electricity, gas and water supply (+6.8%), Grain, sheep, beef and dairy cattle farming (+3.8%) and Employment services (+1.6%). Partly offsetting these rises were falls in the prices for Other agriculture (-3.9%), Sugar and confectionery manufacturing (-4.3%) and Grain mill and cereal food manufacturing (-3.9%).

The imports component recorded rises in the prices for Oil and gas extraction (+10.2%), Petroleum refining and petroleum fuel manufacturing (+7.8%) and Basic ferrous metal manufacturing (+8.2%). Partly offsetting these rises were falls in the prices for Textile, clothing, footwear and leather manufacturing (-2.4%), Polymer product manufacturing (-4.7%) and Other mining (-31.6%).

Comparison of SOP indexes
Graph: This graph shows the levels of the Preliminary, Intermediate and Final Demand Series