ADDITIONAL COMMENTARY


MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES

In the June quarter 2012, the prices paid by manufacturers for material inputs rose 1.0%, while the prices received for outputs rose 0.2%. Through the year to the June quarter 2012, prices of material inputs fell 0.9%, while the prices received for outputs fell 0.4%.

Rises in the prices paid for oil and gas extraction (+3.3%), basic chemical and chemical product manufacturing (+6.9%) and electricity supply (+7.3%), drove the increase in the cost of materials used in the manufacturing industries. Major contributors to these price rises were crude oil, other inorganic chemicals and electricity. Partly offsetting these rises were falls in the prices paid for agriculture (-1.3%) and metal ore mining (-0.8%).

Rises in the prices received for petroleum refining and petroleum fuel manufacturing (+2.4%), industrial gas manufacturing (+7.6%) and iron smelting and steel manufacturing (+1.8%) drove the increase in the prices received for produced articles primary to the manufacturing industries. Major contributors to these price rises were petrol and liquefied natural gas (excluding from refinery). Partly offsetting these rises were falls in the prices received for other basic non-ferrous metal manufacturing (-6.3%), other basic non-ferrous metal product manufacturing (-11.1%) and aluminium smelting (-6.8%).

CONSTRUCTION INDUSTRIES PRODUCER PRICE INDEXES

MATERIALS USED IN HOUSE BUILDING

The price index of materials used in house building rose 0.4% in the June quarter 2012. This follows a fall of 0.1% in the March quarter 2012. The most significant contributors this quarter were rises in prices paid for other materials (+1.3%) and concrete, cement and sand (+3.1%). Partly offsetting these rises were falls in the prices paid for electrical equipment (-1.0%) .

All capital cities except for Melbourne (-0.1%) increased in the June quarter 2012, with price rises ranging from Adelaide (+0.3%) to Hobart (+1.9%).

Through the year to the June quarter 2012, the materials used in house building price index rose 0.5%. This rise was mainly attributed to increases in the prices paid for paint and other coatings (+13.7%), clay bricks (+3.3%) and in-situ concrete (+2.6%).

DIVISION E, SUBDIVISION 30 - BUILDING CONSTRUCTION AND CLASS 3101 ROAD AND BRIDGE CONSTRUCTION

Division E, Subdivision 30 - Building construction rose 0.2% and Class 3101 - Road and bridge construction rose 1.4% for the June quarter 2012.

Subdivision 30 - Building construction was driven by rises in the prices received for Class 3011 - House construction (+0.2%) which was mainly influenced by Western Australia (+1.2%), Class 3020 - Non-residential building construction (+0.2%) which was mainly influenced by New South Wales (+0.4%) and Class 3019 - Other residential building construction (+0.1%) which was mainly influenced by New South Wales (+0.4%).

Through the year to the June quarter 2012, the price index of Subdivision 30 - Building construction fell 0.2% driven by falls in the prices received for Class 3019 - Other residential building construction (-0.6%) and Class 3020 - Non-residential building construction (-0.3%).

The price index for Class 3101 - Road and bridge construction rose 1.4% for the June quarter 2012 which was mainly driven by increases in the prices received for Victoria (+1.1%), Queensland (+2.1%) and New South Wales (+1.0%).

Through the year to the June quarter 2012, Class 3101 - Road and bridge construction rose 3.8%.

SERVICE INDUSTRIES PRODUCER PRICE INDEXES

DIVISION I - TRANSPORT, POSTAL AND WAREHOUSING

Division I - Transport, postal and warehousing recorded rises for the June quarter 2012 in the prices received for Group 481 - Water freight transport (+10.6%) and Group 471 - Rail freight transport (+2.9%).


DIVISION J - INFORMATION MEDIA AND TELECOMMUNICATIONS

Division J - Information media and telecommunications recorded rises for the June quarter 2012 in the prices received for Group 541 - Newspaper, periodical, book and directory publishing (+0.9%) (driven by Class 5411 - Newspaper publishing (+1.1%)) and Group 592 - Data processing, web hosting and electronic information storage services (+0.1%) (driven by Class 5922 - Electronic information storage services (+0.1%)).


DIVISION L - RENTAL, HIRING AND REAL ESTATE SERVICES

Division L - Rental, hiring and real estate services recorded rises for the June quarter 2012 in the prices received for Group 663 - Other goods and equipment rental and hiring (+1.3%) and Class 6712 - Non-residential property operators (+0.6%). Partly offsetting these rises were falls in the prices received for Group 661 – Motor vehicle and transport equipment rental and hiring (–1.8%).


DIVISION M - PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES

Division M - Professional, scientific and technical services recorded rises for the June quarter 2012 in the prices received for Group 695 - Market research and statistical services (+1.3%), Class 6962 - Management advice and related consulting services (+1.3%) and Group 691 - Scientific research services (+0.1%).


DIVISION N - ADMINISTRATIVE AND SUPPORT SERVICES

Division N - Administrative and support services recorded rises for the June quarter 2012 in the prices received for Group 721 - Employment services (+1.5%) (driven by Class 7212 - Labour supply services (+1.8%)). Partly offsetting these rises were falls in the prices received for Group 731 - Building cleaning, pest control and gardening services (-0.1%) (driven by Class 7311 - Building and other industrial cleaning services (-0.8%)).


DIVISION O - PUBLIC ADMINISTRATION AND SAFETY

Division O - Public administration and safety recorded rises for the June quarter 2012 in the prices received for Class 7712 - Investigation and security services (+1.2%).


DIVISION S - OTHER SERVICES

Division S - Other services recorded no change for the June quarter 2012 in the prices received for Class 9533 - Parking services.