ADDITIONAL COMMENTARY


MINING INDUSTRIES PRODUCER PRICE INDEXES

INPUT TO THE COAL MINING INDUSTRY

The Input to the Coal mining industry price index fell 1.4% in the March quarter 2016. This follows a fall of 0.9% in the December quarter 2015. The main driver behind the fall was falls in the prices paid for Petroleum refining and petroleum fuel manufacturing (-26.7%).

Through the year to the March quarter 2016, the Input to the Coal mining industry price index index fell 0.1%.

MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES

The Input to the Manufacturing industries price index fell 1.0% in the March quarter 2016. This follows a fall of 1.8% in the December quarter 2015. The Output of the Manufacturing industries price index fell 1.3% following a fall of 0.9% in the December quarter 2015. Through the year to the March quarter 2016, the Input to the Manufacturing industries price index fell 0.8%, while the Output of the Manufacturing industries price index fell 1.1%.

Falls in the prices paid by manufacturers to the Oil and gas extraction (-18.6%), Basic chemical and chemical product manufacturing (-5.1%), Petrol and coal product manufacturing (-7.4%) and Agriculture (-0.7%) industries drove the fall in the price index of Input to the Manufacturing industries. Products contributing to these falls were crude oil, inorganic chemicals, gas oils, cattle and calves.

Falls in the prices received by manufacturers for outputs of the Petroleum refining and petroleum fuel manufacturing (-17.1%), Iron smelting and steel manufacturing (-6.4%), Meat processing (-3.7%) and Alumina production (-9.2%) industries drove the fall in the price index of Output of the Manufacturing industries. Products contributing to these falls were unleaded petrol, steel sheet, frozen beef and alumina.

CONSTRUCTION INDUSTRIES PRODUCER PRICE INDEXES

INPUT TO THE HOUSE CONSTRUCTION INDUSTRY

The Input to the House construction industry price index rose 0.5% in the March quarter 2016. This follows a rise of 0.6% in the December quarter 2015. The main drivers this quarter were rises in prices paid for Other materials (+0.9%), Plumbing products (+1.3%) and Timber, board and joinery (+0.2%).

The capital city indexes rose in Melbourne (+0.5%), Brisbane (+0.9%), Perth (+0.3%), Sydney (+0.3%) and Hobart (+1.2%). Adelaide (-0.5%) was the only city to record a fall.

Through the year to the March quarter 2016, the Input to the House construction industry price index rose 3.2%. This rise was mainly driven by rises in the prices paid for Timber, board and joinery (+3.0%), Other materials (+4.2%), Plumbing products (+6.2%) and Other metal products (+2.1%).

OUTPUT OF THE CONSTRUCTION INDUSTRIES

The Output of the Construction industries price index, Subdivision 30 - Building construction Australia rose 0.2% and Class 3101 - Road and bridge construction Australia fell 0.5% in the March quarter 2016.

Subdivision 30 - Building construction was driven by rises in the prices received for Class 3020 - Non-residential building construction (+0.4%), driven by rises in Queensland (+1.1%) and New South Wales (+0.3%) and Class 3019 - Other-residential building construction (+0.4%), also driven by rises in Queensland (+1.6%) and New South Wales (+0.3%).

Through the year to the March quarter 2016, Subdivision 30 - Building construction Australia rose 1.8%. This rise was driven by rises in the prices received for Class 3011 - House construction Australia (+2.3%), Class 3020 - Non-residential building construction Australia (+1.5%) and Class 3019 - Other residential building construction Australia (+1.5%). Class 3101 - Road and bridge construction Australia rose 0.8%.

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 March quarter 2016. Prices received for Group 440 - Accommodation rose 1.6% and Group 451 - Cafes, restaurants and takeaway food services rose 0.6%.


OUTPUT OF THE TRANSPORT, POSTAL AND WAREHOUSING INDUSTRIES

The Output of the Transport, postal and warehousing industries rose in the March quarter 2016. Prices received for Group 510 - Postal and courier pick-up and delivery services rose 9.4% and Group 471 - Rail freight transport rose 1.2%. Group 481 - Water freight transport fell 7.0% partly offsetting the rise.


OUTPUT OF THE INFORMATION MEDIA AND TELECOMMUNICATIONS INDUSTRIES

The Output of the Information media and telecommunications industries rose in the March quarter 2016. Prices received for Group 541 - Newspaper, periodical, book and directory publishing rose 0.5%. The rise was driven by Class 5412 - Magazine and periodical publishing (+1.1%).


OUTPUT OF THE RENTAL, HIRING AND REAL ESTATE SERVICES INDUSTRIES

The Output of the Rental, hiring and real estate services industries rose in the March quarter 2016. Prices received for Group 672 - Real estate services rose 1.5%.


OUTPUT OF THE PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES INDUSTRIES

The Output of the Professional, scientific and technical services industries fell in the March quarter 2016. Prices received for Group 692 - Architectural, engineering and technical services fell 0.6%. The fall was driven by Class 6923 - Engineering design and engineering consulting services (-0.5%).


OUTPUT OF THE ADMINISTRATIVE AND SUPPORT SERVICES INDUSTRIES

The Output of the Administrative and support services industries fell in the March quarter 2016. Prices received for Group 721 - Employment services fell 0.9%. The fall was driven by Class 7212 - Labour supply services (-1.3%). Group 729 - Other administrative services rose 0.5% partly offsetting the fall.


OUTPUT OF THE PUBLIC ADMINISTRATION AND SAFETY INDUSTRIES

The Output of the Public administration and safety industries fell in the March quarter 2016. Prices received for Class 7712 - Investigation and security services fell 0.1%.


OUTPUT OF THE OTHER SERVICES INDUSTRIES

The Output of the Other services industries rose in the March quarter 2016. Prices received for Class 9533 - Parking services rose 0.1%.