6427.0 - Producer Price Indexes, Australia, Jun 2020 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 31/07/2020   
   Page tools: Print Print Page Print all pages in this productPrint All RSS Feed RSS Bookmark and Share Search this Product

Quarterly changes to industries

Construction industries

Input to the house construction industry rose 1.2%, due to:

General price rises for:

  • Electrical equipment (+8.5%)
  • Timber, board and joinery (+0.8%)

Offset by:
  • Concrete, cement and sand (-1.1%)
  • Other metal products (-0.2%)

The main contributing capital cities reflect increased supplier prices:
  • Sydney (+1.6%), due to timber windows and electric cable and conduit.
  • Melbourne (+1.0%), due to timber windows and paint and other coatings.
  • Brisbane (+1.0%), due to terracotta tiles and electric cable and conduit.
  • Perth (+0.9%), due to electric cable and conduit and carpet and floor covering.
  • Adelaide (+0.7%), due to carpet and floor covering and switch and distribution board.
  • Hobart (+0.7%), due to switch and distribution board and paint and other coatings.

Input to the house construction industry, 6 Capitals: Quarterly
Graph: MATERIALS USED IN HOUSE BUILDING, All groups Quarterly % change

Over the past twelve months Inputs to House construction rose 1.8%, due to rises in prices for:
  • Electrical equipment (+14.4%)
  • Other materials (+2.6%)
  • Timber, board and joinery (+0.6%)

Output of the construction industries:

Subdivision 30 - Building construction rose 0.2% this quarter and rose 0.3% over the past twelve months.

Subdivision 30 Building construction, Quarterly
Graph: SELECTED OUTPUT PRIMARY TO BUILDING CONSTRUCTION ,  Quarterly % change


Class 3011 - House construction fell 0.1%, driven by:
  • House builders have passed through higher input costs; however, these have been offset by higher bonus offers in response to falling demand.
  • Victoria (-0.6%)
  • New South Wales (-0.4%)
  • South Australia (-0.5%)
  • Over the past twelve months House construction rose 0.8%.

Class 3019 - Other residential building construction rose 0.3%, driven by:
  • Victoria (+1.0%), due to increases in material costs and COVID-19 related protocols requiring increased social distancing on job sites and increased cleaning measures.
  • Northern Territory (+1.8%), due to material and labour cost increases.
  • Over the past twelve months Other residential building construction rose 0.1%.

Class 3020 - Non-residential construction rose 0.3%, driven by:
  • Victoria (+0.9%), due to increases in material and preliminary costs in relation to COVID-19.
  • Northern Territory (+2.1%), due to the commencement of new projects supporting the pass through of material and labour costs.
  • Over the past twelve months Non-residential building construction rose 0.2%.

Subdivision 31 - Heavy and civil engineering construction rose 0.1%, driven by:
  • Class 3109 - Other heavy and civil engineering construction rose 0.3%, due to increases on imported items driven by exchange rates.
  • Class 3101 - Road and bridge construction fell 0.8%, due to falls in global crude oil prices, impacting the price of diesel fuel.
  • Over the past twelve months Other heavy and civil engineering construction rose 1.5% and Road and bridge construction fell 0.5%.
  • Over the past twelve months Subdivision 31 - Heavy and Civil engineering construction rose 1.0%.


Mining industries

Input to the coal mining industry fell 3.1%, due to:
  • Petroleum and coal product manufacturing, driven by falls in global crude oil prices.
  • Over the past twelve months Input to the coal mining industry fell 2.3%.


Input to the Coal Mining Industry, Quarterly
Graph: Input to the Coal Mining Industry


Output of the mining industries

Prices received for Gas extraction, Domestic fell 5.3%, driven by:
  • Domestic, East coast market fell 6.6%, due to demand and falling global crude oil prices.
  • Domestic, Western Australia rose 2.4%, due to reduced supply and new contracts based on supply availability.
  • Over the past twelve months Gas extraction, Domestic fell 3.4%.


Manufacturing industries

Input to the manufacturing industries fell 0.9%, due to:
  • Oil and gas extraction to manufacturing (-26.3%), due to strong price falls in global crude oil prices.
  • Electricity supply to manufacturing (-12.8%), due to contracts based on spot prices and low demand following COVID-19 restrictions.
  • Primary metal and metal product manufacturing (-2.7%), due to falls in Aluminium prices driven by decreased industrial demand as a result of COVID-19 lock-down measures.
  • Over the past twelve months Input to the Manufacturing industries rose 1.5%.

Input to the manufacturing industries, Quarterly
Graph: MATERIALS USED IN MANUFACTURING INDUSTRIES, Division Quarterly % change


Output of the manufacturing industries fell 1.1%, due to:
  • Petrol refining and petrol fuel manufacturing (-32.3%), due to falls in global crude oil prices.
  • Alumina production (-10.5%), due to increased supply and reduced demand as a result of COVID-19.
  • Copper, silver, lead and zinc smelting and refining (-8.8%), due to falls in copper prices as a result of reduced global demand.
  • Over the past twelve months Output of the Manufacturing industries rose 1.1%.

Output of the manufacturing industries, Quarterly
Graph: ARTICLES PRODUCED BY MANUFACTURING INDUSTRIES, Division Quarterly % change


Services industries

Output of the Services industries

Accommodation and food services fell, driven by:
  • Group 440 - Accommodation services (-8.3%), due to reduced demand from COVID-19 travel restrictions.

Transport, postal and warehousing industries rose, driven by:
  • Group 481 - Water freight transport (+12.0%), due to COVID-19 related port closures, increased demand for port storage, the depreciation of the Australian dollar and the implementation of low sulphur fuel regulations.

Rental, hiring and real estate services industries fell, driven by:
  • Class 6712 - Non-residential property operators (-1.1%), due to increased sublease supply for office spaces and reduced demand for retail space.
  • Class 6611 - Passenger car rental and hiring (-15.9%), due to reduced demand from COVID-19 travel restrictions.

Health care and social assistance industries fell, driven by:
  • Class 871 - Child care services (-36.7%), due to the Early Childhood Education and Care Relief Package temporarily replacing the Child Care Subsidy from the 6th of April until the 12th of July as a result of COVID-19. Under the package, gap fees were waived and child care services received a weekly business continuity payment, resulting in an overall fall in prices received. Please note, the reduction in input costs from the JobKeeper Payment is not reflected in the prices received for child care services.