8155.0 - Australian Industry, 2017-18 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 31/05/2019   
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Industry analysis

  • Estimates in this issue cover the performance of selected industries compiled from the annual Economic Activity Survey (EAS) and from Business Activity Statement (BAS) data reported to the Australian Taxation Office (ATO) expressed in current prices.
  • Employment is reported at the end of June 2018.
  • Financial items are reported for the financial year ending June. However, estimates are not adjusted for situations where businesses report to the ABS on an off-June reporting year and can be impacted by price fluctuations. This particularly impacts on estimates for the Mining industry (see below). For a limited range of estimates adjusted to a June financial year basis, see the 'Off-June adjusted estimates by subdivision' data cube. For more information about the impact of off-June year reporting on estimates, see the Technical note on Off-June Year adjusted estimates in this issue.
  • For more information on the scope and coverage of the collection for Australian Industry, 2017-18, please refer to the Explanatory Notes.


Mining

The Mining industry experienced strong growth in 2017-18 across all key data items:
  • EBITDA for the Mining industry grew 26.0% ($21.7b).
  • The Export Price Index for Mining grew 5.0% between the 2016-17 and 2017-18 financial years, and 28.7% between calendar years 2016 and 2017.
  • Oil and gas extraction subdivision EBITDA grew 55.4% ($9.7b) driven by strong exports.
  • Growth in the Coal mining subdivision was also driven by continuing strong exports with 40.6% ($7.6b) growth in EBITDA.
  • Employment grew 7.0% (11,000 people) largely driven by the Exploration and other mining support services subdivision in response to growth in the upstream mining subdivisions.

For more detailed financial performance information on the Mining industry please refer to the 'Mining operations' data cube on the Downloads page.

Estimates for the Mining industry largely reflect calendar year reporting for 2017.


Construction

The Construction industry recorded strong growth across all data items with growth recorded in all subdivisions:
  • Building construction EBITDA grew 16.1% ($2.3b). This increased activity was reflected in the 7.3% growth in the value of building work done in Australia.
  • Continuing low interest rates combined with strong price growth, as reflected in the Residential Property Price Index, fuelled growth in residential housing construction, particularly in the eastern state capitals.
  • Heavy and civil engineering construction returned to growth following four years of contraction, with EBITDA increasing 7.2% ($224m).
  • The Construction services subdivision also experienced strong growth with EBITDA increasing 6.4% ($1.6b). This subdivision benefitted from the increased activity mentioned above via subcontracting to businesses in Building construction and Heavy and civil engineering construction subdivisions.


Manufacturing

The Manufacturing industry grew 5.4% in sales and service income following five consecutive years of contraction.
  • Primary metal and metal product manufacturing subdivision sales and service income grew 12.0% ($5.7b) driven by Alumina production class which rose 29.4% ($1.7b). The Output Producer Price Index for Alumina production rose 36.7% while the same index for Aluminium smelting rose 19.1%.
  • Food product manufacturing sales and services income grew 4.2% ($3.6b) largely due to a 5.6% increase in exports by Food product manufacturing businesses, but input costs including utilities expenses also rose, reflected in the 4.4% ($2.3b) rise in purchases of goods and materials and resulting in a slight decline in EBITDA of 0.9% ($55m).
  • Petroleum and coal product manufacturing also contributed to the growth with a 16.6% ($2.2b) increase in sales and services income. This growth was also reflected in the 14.5% rise in the Output Producer Price Index for Petroleum and coal product manufacturing.
  • Input costs rose in the form of increased electricity (14.4%) and gas (22.1%) prices, as recorded in the Input Producer Price Index for inputs to Manufacturing.
  • Wages and salaries in the Manufacturing industry grew 2.9% ($1.6b), supported by a 1.2% (10,000 people) increase in employment.

For ANZSIC class level information on the Manufacturing industry please refer to the 'Manufacturing industry' data cube on the Downloads page.


Wholesale trade

The Wholesale trade industry experienced growth across most key indicators:
  • Sales and service income increased by 2.4% ($11.9b).
  • Wages and salaries decreased by 2.1% ($789m).
  • Employment decreased by 0.9% (5,000 people) contributing to the decline in wages and salaries.
  • EBITDA increased by 24.5% ($4.4b).
  • Basic material wholesaling sales and service income grew 4.0% ($5.8b) and EBITDA increased by 83.8% ($3.0b), supported by increases in prices for petroleum and gas products, with the Export Price Indexes for these products increasing 20.8% and 14.4% respectively.


Agriculture, forestry and fishing

This industry experienced decreases in most key indicators in 2017-18 after a record wheat crop in 2016-17. Additionally the industry was subject to drought conditions across much of Australia in 2017-18.

This industry was dominated by Agriculture subdivision results:
  • Sales and service income fell 2.4% ($1.9b).
  • Fodder and utility costs increased, leading to a 3.7% ($1.4b) rise in purchases of goods and materials.
  • EBITDA fell by 14.0% ($2.8b).


Professional, scientific and technical services
  • This industry recorded the strongest employment growth of all industries, rising 64,000 people (6.2%).
  • The industry benefitted from increased demand for their services from upstream industries including Heavy and civil engineering construction which experienced strong growth as mentioned above.


Health care and social assistance
  • Employment in Health care and social assistance grew 5.1% (58,000 people).
  • Strong growth was recorded in both the Medical and other health care services and Social assistance services subdivisions with 3.9% (15,000 people) and 11.5% (40,000 people) increases respectively.
  • Much of the employment growth was due to structural changes within the industry brought on by the NDIS roll-out as the number of NDIS service providers in the industry grew strongly over this period (NDIS Annual report).


Administrative and support services
  • Employment grew 6.3% (54,000 people), mainly driven by the Administrative services subdivision.