ADDITIONAL COMMENTARY


MINING INDUSTRIES PRODUCER PRICE INDEXES

INPUT TO THE COAL MINING INDUSTRY

The Input to the Coal mining industry price index rose 0.8% in the September quarter 2016. This follows a rise of 0.2% in the June quarter 2016. The main contributing factors were rises in the price paid for Accommodation.

Through the year to the September quarter 2016, the Input to the Coal mining industry price index fell 1.3%.

MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES

The Input to the Manufacturing industries price index rose 2.0% in the September quarter 2016 following a rise of 0.9% in the June quarter 2016. The Output of the Manufacturing industries price index rose 0.9% following a rise of 0.6% in the June quarter 2016. Through the year to the September quarter 2016, Input to the Manufacturing industries price index rose 0.1%, while the Output of the Manufacturing industries price index fell 0.7%.

Rises in prices paid by manufactures to the Agriculture (+5.1%), Metal ore mining (+5.3%) and Oil and gas extraction (+4.4%) industries drove the rise in the price index of Input to the Manufacturing industries. Products contributing to these rises were cattle & calves, silver ores and crude oil.

Rises in prices received by manufactures for outputs of Meat processing (+6.5%), Basic non-ferrous metal manufacturing (+4.6%), Sugar manufacturing (+16.0%), Copper, silver, lead and zinc smelting (+6.4%) and Industrial gas manufacturing (+6.8%) industries drove the rises in the price index of Output of the Manufacturing industries. Products contributing to these rises were beef and veal, precious metal recovery, sugar and non-refinery LNG.

CONSTRUCTION INDUSTRIES PRODUCER PRICE INDEXES

INPUT TO THE HOUSE CONSTRUCTION INDUSTRY

The Input to the House construction industry price index showed no change in the September quarter 2016. This follows a rise of 1.4% in the June quarter 2016. Rises in prices paid for Cement products (+1.4%) and Timber, board and joinery (+0.1%) were offset by falls in Steel products (-1.0%) and Concrete, cement and sand (-0.5%).

The capital city indexes rose in Sydney (+0.2%), Brisbane (+0.1%). Melbourne showed no change and Perth (-0.2%), Hobart (-0.8%) and Adelaide (-0.1%) showed falls.

Through the year to the September quarter 2016, the Input to the House Construction Industry price index rose 2.4%. This rise was mainly driven by rises in the prices paid for Timber, board and joinery (+2.5%), Other materials (+3.4%) and Plumbing products (+6.4%).

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 0.1% for the September quarter 2016.

Subdivision 30 - Building construction Australia was driven by rises in the prices received for Class 3011 - House construction Australia (+0.4%), which was driven by Victoria (+0.9%) and New South Wales (+0.4%). Class 3019 - Other residential building construction Australia rose (+0.4%), driven by Queensland (+1.5%) and New South Wales (+0.7%). Class 3020 - Non-residential building construction Australia rose (0.2%), driven by New South Wales (+0.8%) and Queensland (+0.9%).

Through the year to the September quarter 2016, Subdivision 30 - building construction Australia recorded a rise of 1.4%. This rise was driven by rises in the prices received for Class 3011 - House construction Australia (+1.3%), Class 3019 - Other residential building construction (+1.9%) and Class 3020 - Non-residential building construction Australia (+1.4%).

Subdivision 31 - Heavy and Civil engineering recorded a rise of 0.1%. Class 3109 Other heavy and civil engineering and Class 3101 Road and Bridge construction remain unchanged for the quarter.

Through the year to the September quarter 2016, Subdivision 31- Heavy and Civil engineering fell 0.3%. Prices received for Class 3101 - Road and bridge construction fell 0.7% and Class 3109 - Other heavy and civil engineering fell 0.1%.

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 September quarter 2016. Prices received for Group 440 - Accommodation rose 6.2% and Group 451 - Cafes, restaurants and takeaway food services rose 0.5%.


OUTPUT OF THE TRANSPORT, POSTAL AND WAREHOUSING INDUSTRIES

The Output of the Transport, postal and warehousing industries rose in the September quarter 2016. Prices received for Group 471 - Rail freight transport rose 3.5% and Group 510 - Postal and courier pick-up and delivery services rose 1.1%. Partially offsetting these rises were falls for Group 481 - Water freight transport (-4.0%).


OUTPUT OF THE INFORMATION MEDIA AND TELECOMMUNICATIONS INDUSTRIES

The Output of the Information media and telecommunications industries rose in the September quarter 2016. Prices received for Group 541 - Newspaper, periodical, book and directory publishing rose 1.0%. The rise was driven by Class 5411 - Newspaper publishing (+1.6%).


OUTPUT OF THE RENTAL, HIRING AND REAL ESTATE SERVICES INDUSTRIES

The Output of the Rental, hiring and real estate services industries rose in the September quarter 2016. Prices received for Group 672 - Real estate services rose 0.8% and Class 6712 - Non-residential property operators rose 0.5%.


OUTPUT OF THE PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES INDUSTRIES

The Output of the Professional, scientific and technical services industries rose in the September quarter 2016. Prices received for Group 693 - Legal and accounting services rose 1.2%, Group 700 - Computer system design and related services rose 0.9% and Group 692 - Architectural, engineering and technical services rose 0.5%.


OUTPUT OF THE ADMINISTRATIVE AND SUPPORT SERVICES INDUSTRIES

The Output of the Administrative and support services industries rose in the September quarter 2016. Prices received for Group 721 - Employment services rose 1.0%. The rise was driven by Class 7212 - Labour supply services (+1.4%).


OUTPUT OF THE PUBLIC ADMINISTRATION AND SAFETY INDUSTRIES

The Output of the Public administration and safety industries rose in the September quarter 2016. Prices received for Class 7712 - Investigation and security services rose 1.7%.


OUTPUT OF THE OTHER SERVICES INDUSTRIES

The Output of the Other services industries rose in the September quarter 2016. Prices received for Group 952 - Funeral, crematorium and cemetery services rose 0.8%.