ADDITIONAL COMMENTARY


MINING INDUSTRIES PRODUCER PRICE INDEXES

INPUT TO THE COAL MINING INDUSTRY

The Input to the Coal mining industry price index rose 1.6% in the December quarter 2017. This follows a rise of 0.2% in the September quarter 2017.

Through the year to the December quarter 2017, the Input to the Coal mining industry price index rose 2.8%.

OUTPUT OF THE MINING INDUSTRIES

Prices received for Gas extraction, Domestic rose 0.3%, Gas extraction, Domestic, East coast market rose 2.1% and Gas extraction, Domestic, Western Australia fell 7.9% in the December quarter 2017.


MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES

The Input to the Manufacturing industries price index rose 1.8% in the December quarter 2017. This follows a fall of 0.6% in the September quarter 2017. The Output of the Manufacturing industries price index rose 2.4% following a fall of 0.7% in the September quarter 2017. Through the year to the December quarter 2017, the Input to the Manufacturing industries price index rose 3.0%, while the Output of the Manufacturing industries price index rose 3.5%.

Rises in prices paid for Oil and gas extraction (+15.8%), Primary metals and metal production (+4.8%) and Metal ore mining to manufacturing (+2.6%) industries drove the rise in the price index of Inputs to the Manufacturing industries. Products contributing to these rises were crude oil, steel and copper.

Rises in prices received for outputs of Alumina production (+38.7%), Petroleum refining and petroleum fuel manufacturing (+13.8%) and Copper, silver, lead and zinc smelting and refining (+10.7%), drove the rise in the prices received for Outputs of the Manufacturing industries. Products contributing to these rises were alumina, petrol and zinc.

CONSTRUCTION INDUSTRIES PRODUCER PRICE INDEXES

INPUT TO THE HOUSE CONSTRUCTION INDUSTRY

The Input to the House construction industry index rose 0.6% in the December quarter 2017. This follows a 0.4% rise in the September quarter 2017. The main drivers this quarter were rises in prices paid for timber, board and joinery (+0.7%), steel products (+4.0%) and other metal products (+0.7%).

The capital city indexes rose in Sydney (+0.9%), Brisbane (+0.7%), Melbourne (+0.4%), Perth (+0.5%), Hobart (+0.6%) and Adelaide (+0.1%)

Through the year to the December quarter 2017, the Input to the House Construction Industry index rose 2.7%. The main drivers for the year were rises in the prices paid for timber, board and joinery (+3.4%), other metal products (+4.1%) and electrical equipment (+7.4%).

OUTPUT OF THE CONSTRUCTION INDUSTRIES

The output of the construction industries price index, Subdivision 30 - Building construction Australia rose 0.4% and Subdivision 31 - Heavy and civil engineering construction rose 0.6% in the December quarter 2017.

Subdivision 30 - Building construction Australia saw a rise this quarter in the prices received for Class 3011 - House construction Australia (+0.8%), driven by Queensland (+1.7%), Victoria (+1.1%) and New South Wales (+0.5%). Class 3020 - Non-residential construction Australia rose (+0.2%), driven by New South Wales (+0.4%) and South Australia (+0.6%). Class 3019 - Other residential construction rose (+0.2%), driven by New South Wales (+0.5%), Tasmania (+0.8%) and South Australia (+0.7%).

Through the year to the December quarter 2017, Subdivision 30 - Building construction Australia recorded a rise of 2.5%. This rise was driven by increases in the prices received for Class 3011 - House construction Australia (+3.7%), Class 3020 - Non-residential building construction Australia (+1.6%) and Class 3019 - Other residential building construction Australia (+1.6%).

Subdivision 31 - Heavy and Civil engineering construction was driven by a rise in the prices received for Class 3109 - Other heavy and civil engineering construction (+0.6%) and Class 3101 - Road and bridge construction (+0.8%).

Through the year to the December quarter 2017, Subdivision 31- Heavy and Civil engineering construction recorded a rise of 2.6%. This rise was driven by increases in the prices received for Class 3109 - Other heavy and civil engineering construction (+2.6%) and Class 3101 - Road and bridge construction (+2.9%).

SERVICES INDUSTRIES PRODUCER PRICE INDEXES

OUTPUT OF THE ACCOMMODATION AND FOOD SERVICES INDUSTRIES

The Output of the Accommodation and food services industries rose in the December quarter 2017. Prices received for Group 440 - Accommodation services rose 7.3% and Group 451 - Cafes, restaurants and takeaway food services rose 0.4%.


OUTPUT OF THE TRANSPORT, POSTAL AND WAREHOUSING INDUSTRIES

The Output of the Transport, postal and warehousing industries rose in the December quarter 2017. Prices received for Group 471 - Rail freight transport services rose 6.9% and Group 521 - Water transport support services rose 6.1%.


OUTPUT OF THE INFORMATION MEDIA AND TELECOMMUNICATIONS INDUSTRIES

The Output of the Information media and telecommunications industries rose in the December quarter 2017. Prices received for Group 541 - Newspaper, periodical, book and directory publishing rose 0.2% and Group 592 - Data processing, web hosting and electronic information services rose 1.2%.


OUTPUT OF THE RENTAL, HIRING AND REAL ESTATE SERVICES INDUSTRIES

The Output of the Rental, hiring and real estate services industries rose in the December quarter 2017. Prices received for Group 672 - Real estate services rose 1.2% and Group 663 - Other goods and equipment rental and hiring rose 0.3%.


OUTPUT OF THE PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES INDUSTRIES

The Output of the Professional, scientific and technical services industries rose in the December quarter 2017. Prices received for Group 692 - Architectural, engineering and technical services rose 0.9% and Group 693 - Legal and accounting services rose 1.1%.


OUTPUT OF THE ADMINISTRATIVE AND SUPPORT SERVICES INDUSTRIES

The Output of the Administrative and support services industries rose in the December quarter 2017. Prices received for Group 721 - Employment services rose 0.8% and Group 729 - Other administrative services rose 2.3%.


OUTPUT OF THE PUBLIC ADMINISTRATION AND SAFETY INDUSTRIES

The Output of the Public administration and safety industries rose in the December quarter 2017. Prices received for Class 7712 - Investigation and security services rose 0.4%.


OUTPUT OF THE EDUCATION AND TRAINING INDUSTRIES

The Output of the Education and training Industries showed no change in the December quarter 2017. Prices received for resident and non-resident consumption of Class 8102 - Higher education services showed no change in the December quarter 2017 as this is an annual collection recorded in the March quarter.


OUTPUT OF THE HEALTH CARE AND SOCIAL ASSISTANCE INDUSTRIES

The Output of the Health care and social assistance industries rose in the December quarter 2017. Prices received for Group 851 - Medical services rose 0.3% and Group 871 - Child care services rose 0.5%.


OUTPUT OF THE OTHER SERVICES INDUSTRIES

The Output of the Other services industries rose in the December quarter 2017. Prices received for Class 9511 - Hairdressing and beauty services rose 0.6%, 9533 - Parking services rose 0.6%, and Class 9531 - Laundry and dry-cleaning services rose 1.0%. Offsetting this rise was a fall in prices received for Class 9520 - Funeral, crematorium and cemetery services (-1.4%).