ADDITIONAL COMMENTARY


MINING INDUSTRIES PRODUCER PRICE INDEXES

INPUT TO THE COAL MINING INDUSTRY

The Input to the Coal mining industry price index rose 1.1% in the March quarter 2017. This follows a rise of 1.1 % in the December quarter 2016. The main contributing factors were rises in the price paid for Petroleum and coal product manufacturing.

Through the year to the March quarter 2017, the Input to the Coal mining industry price index rose 3.3%.

MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES

The Input to the Manufacturing industries price index rose 1.7% in the March quarter 2017. This follows a rise of 0.3% in the December quarter 2016. The Output of the Manufacturing industries price index rose 1.1% following a rise of 0.9% in the December quarter 2016. Through the year to the March quarter 2017, Input to the Manufacturing industries price index rose 5.0%, while the Output of the Manufacturing industries price index rose 3.5%.

Rises in prices paid for Oil gas extraction manufacturing (+10.1%), Metal ore mining to manufacturing (+3.4%) and Basic chemical and chemical productions to manufacturing (+4.5%) industries drove the rise in the price index of Inputs to the Manufacturing industries. Products contributing to these rises were crude oil, iron ore and caustic soda.

Rises in prices received for outputs of Alumina production (+25.2%), Petrol refining & petrol fuel manufacturing (+7.3%), Copper, silver, lead and zinc smelting and refining (+7.5%), drove the rise in the prices received for Outputs to the Manufacturing industries. Products contributing to these rises were alumina, diesel, copper & lead.

CONSTRUCTION INDUSTRIES PRODUCER PRICE INDEXES

INPUT TO THE HOUSE CONSTRUCTION INDUSTRY

The Input to the House construction industry price index rose 0.9% in the March quarter 2017. This follows a rise of 0.4% in the December quarter 2016. The main drivers this quarter were rises in prices paid for Timber, board and joinery (+0.9%), Other metal products (+2.0%) and Electrical equipment (+5.8%).

The capital city indexes rose in Melbourne (+1.5%), Brisbane (+1.1%), Sydney (+0.8%), Adelaide (+1.5%), Hobart (+1.1%) and Perth (+0.1%).

Through the year to the March quarter 2017, the Input to the House construction industry price index rose 2.7%.This rise was mainly driven by rises in the prices paid for Other metal products (+3.5%), Steel products (+2.0%) and Ceramic products (+2.2%).

OUTPUT OF THE CONSTRUCTION INDUSTRIES

The Output of the Construction industries price index, Subdivision 30 - Building construction Australia rose 0.6% and Subdivision 31 - Heavy and civil engineering construction rose 0.5% in the March quarter 2017.

Subdivision 30 - Building construction Australia was driven by rises in the prices received for Class 3011 - House construction Australia (+1.1%), which was driven by Queensland (+2.3%), New South Wales (+1.7%) and Victoria (+1.4%). Class 3020 - Non-residential construction Australia rose (+0.3%), driven by New South Wales (+0.5%) and Queensland (+0.6%). Class 3019 - Other residential construction rose (+0.4%), driven by New South Wales (+0.5%) and Queensland (+0.6%).

Through the year to the March quarter 2017, Subdivision 30 - Building construction Australia recorded a rise of 2.3%. This rise was driven by increases in the prices received for Class 3011 - House construction Australia (+3.0%), Class 3019 - Other residential building construction Australia (+2.1%) and Class 3020 - Non-residential building construction Australia (+1.8%).

Subdivision 31 - Heavy and civil engineering was driven by rises in the prices received for Class 3109 - Other Heavy and Civil engineering (+0.5%) and Class 3101 - Road and bridge construction (+ 0.4%).

Through the year to the March quarter 2017, Subdivision 31- Heavy and Civil engineering recorded a rise of 0.3%. The rise was driven by increases in the prices received for Class 3109 - Other heavy and civil engineering (+0.4%) and Class 3101 - Road and bridge construction (+0.2%).

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 2017. Prices received for Group 440 - Accommodation rose 0.9% 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 March quarter 2017. Prices received for Group 510 - Postal and courier pick up and delivery services rose 1.3% and Group 471 - Rail freight transport rose 1.9%. Partially offsetting these rises was a fall for Class 4622 - Urban bus transport (including tramway) (–2.7%).

OUTPUT OF THE INFORMATION MEDIA AND TELECOMMUNICATIONS INDUSTRIES

The Output of the Information media and telecommunications industries rose in the March 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 fell 0.1%.

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 2017. Prices received for Class 6712 - Non-residential property operators rose 1.1% and Group 672 - Real estate services rose 2.0%. Partially offsetting these rises was a fall for Group 661 - Motor vehicle and transport equipment rental and hiring (–0.3%).

OUTPUT OF THE PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES INDUSTRIES

The Output of the Professional, scientific and technical services industries rose in the March quarter 2017. Prices received for Group 692 - Architectural, engineering and technical services rose 0.3%, Group 693 - Legal and accounting services rose 0.2% and Group 700 - Computer system design and related services rose 0.1%.

OUTPUT OF THE ADMINISTRATIVE AND SUPPORT SERVICES INDUSTRIES

The Output of the Administrative and support services industries fell in the March quarter 2017. Prices received for Group 721 - Employment services fell 2.5%. Partially offsetting this fall was a rise for Group 729 - Other administration services (+1.5%).

OUTPUT OF THE PUBLIC ADMINISTRATION AND SAFETY INDUSTRIES

The Output of the Public administration and safety industries rose in the March 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 rose in the March quarter 2017. Prices received for Class 8102 - Higher education, domestic services rose 1.9%. Prices received for Class 8102 - Higher education, exports services rose 3.7%.

OUTPUT OF THE OTHER SERVICES INDUSTRIES

The Output of the Other services industries rose in the March quarter 2017. Prices received for Class 9511 - Hairdressing and beauty services rose 0.3%, Class 9520 - Funeral, crematorium and cemetery services rose 2.8%, Class 9531 - Laundry and dry-cleaning services rose 0.6% and Class 9533 - Parking services rose 0.3%.