6427.0 - Producer Price Indexes, Australia, Dec 2019 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 31/01/2020   
   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 recorded no change this quarter, due to:

  • Plumbing products (+2.1%).
  • Other metal products (+0.3%).

Offset by:
  • Other materials (-0.9%).
  • Timber, board and joinery (-0.2%).

The main contributing capital cities reflect a flat housing market for the quarter:
  • Sydney (+0.6%), due to aluminium windows and doors and plastic pipework and fittings.
  • Hobart (+0.9%), due to lime and ready mixed concrete.
  • Offset by falls in Perth (-0.5%), due to electric cable and conduit and carpet and floor covering.
  • Melbourne (-0.3%), due to aluminium windows and doors and timber doors.

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

Over the twelve months to December 2019 quarter Inputs to House construction rose 0.6%, due to rises in prices for:
  • Other materials (+2.1%).
  • Plumbing products (+3.0%).
  • Other metal products (+0.9%).


Output of the construction industries:

Subdivision 30 - Building construction rose 0.2% this quarter and rose 0.8% over the last twelve months.

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


Class 3011 - House construction (+0.6%), driven by:
  • Victoria (+1.8%), due to easing bonus offers and increasing input costs.
  • Queensland (+1.1%), due to increasing base prices.
  • South Australia (+1.3%), due to pass through of supplier price rises.
  • Over the last twelve months to December 2019 quarter House construction fell 0.5%.

Class 3020 - Non-residential construction rose 0.1%, driven by:
  • Queensland (+0.3%), due to material and labour pressures.
  • Tasmania (+1.0%), due to rises in both materials and labour as there was limited availability in the market.
  • Australian Capital Territory (+0.8%), due to good market conditions and increased material pressures.
  • Over the last twelve months to December 2019 quarter Non-residential building construction rose 1.4%.

Class 3019 - Other residential building construction rose 0.1%, driven by:
  • Tasmania (+1.6%), due to increased demand for critical trades. The Hobart market remains strong allowing suppliers and builders to pass on costs.
  • Australian Capital Territory (+0.8%), due to material and labour price pressures.
  • South Australia (+0.2%), due to minor labour movements and resource availability.
  • Over the last twelve months to December 2019 quarter Other residential building construction rose 1.6%.

Subdivision 31 - Heavy and civil engineering construction rose 0.2%, due to increases in labour and supplier prices. Driven by:
  • Class 3109 - Other heavy and civil engineering construction (+0.3%).
  • Class 3101 - Road and bridge construction (+0.2%).
  • Over the last twelve months to December 2019 quarter Other heavy and civil engineering construction rose 2.0% and Road and bridge construction rose 1.1%.
  • Over the last twelve months to December 2019 quarter Subdivision 31 - Heavy and Civil engineering construction rose 1.8%.


Mining industries

Input to the coal mining industry rose 0.5% this quarter.
  • Over the last twelve months to December 2019 quarter Input to the coal mining industry rose 0.9%.


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 4.0%, due to.
  • Domestic, East coast market fell 4.4%, due to demand and global crude oil prices,
  • Domestic, Western Australia fell 1.8%. due to strong supply and global crude oil prices
  • Over the last twelve months to December 2019 quarter Gas extraction, Domestic fell 1.7%.


Manufacturing industries

Input to the manufacturing industries fell 1.0% this quarter, due to:
  • Metal ore mining manufacturing (-5.1%), due to falling iron ore and nickel prices with increased international supply.
  • Agriculture to manufacturing (-1.4%) , due to seasonal falls in farmgate milk prices. Drought conditions continued to impact supplies, holding prices higher.
  • Basic chemical and chemical product manufacturing (-1.7%), due to falls in plastics with reduced demand as a result of the ongoing trade negotiations.
  • Over the last twelve months to December 2019 quarter Input to the Manufacturing industries rose 3.7%.

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


Output of the manufacturing industries rose 0.3% this quarter, due to:
  • Meat processing (+5.9%), due to higher beef prices as a result of increased export demand.
  • Petroleum refining and petroleum fuel manufacturing (+4.1%), due to oil production cuts and reduced trade tensions.
  • Cured meat and smallgoods manufacturing (+5.8%), due to higher pork prices as a result of African Swine Fever reducing global supply.
  • Over the last twelve months to December 2019 quarter Output of the Manufacturing industries rose 2.7%.

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 rose, driven by prices received for:
  • Group 440 - Accommodation services (+9.3%), due to a seasonal increase in demand, with Victoria in particular experiencing higher prices.

Transport, postal and warehousing industries rose, driven by prices received for:
  • Group 461 - Road freight transport services (+0.8%), due to toll road increases and elevated fuel prices.
  • Group 510 - Postal and courier pick-up and delivery services (+1.5%), due to annual price reviews.

Rental, hiring and real estate services industries fell, driven by prices received for:
  • Group 661 - Motor vehicle and transport equipment rental and hiring (-5.0%), returning to previous levels after a very strong September quarter.
  • Partly offsetting is Class 6712 - Non-residential property operators (+0.4%), due to continued strength in the Victorian and New South Wales office and industrial property markets.

Professional, scientific and technical services industries rose, driven by prices received for:
  • Group 692 - Architectural, engineering and technical services (+0.5%), due to rate reviews.
  • Group 693 - Legal & accounting services (+0.2%), primarily driven by large accounting firms.

Other services industries fell, driven by prices received for:
  • Class 9520 - Funeral, crematorium and cemetery services (-2.1%), due to price pressures within the industry.
  • Partly offsetting is Class 9511 - Hairdressing and beauty services (+0.5%), due to a rising input costs.