ADDITIONAL COMMENTARY


MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES

In the September quarter 2011, the prices paid by manufacturers for material inputs rose 0.2%, while the prices received for outputs fell 0.4%. Through the year to the September quarter 2011, prices of material inputs rose 8.7%, while the prices received for outputs rose 3.4%.

Rises in the prices paid for products from metal ore mining (+9.1%), basic chemical and chemical product manufacturing (+3.8%) and coal mining manufacturing (+4.1%) drove the increase in the cost of materials used in the manufacturing industries. Major contributors to these price rises were gold bullion and, silver and zinc ores. Partly offsetting these rises were falls in the prices paid for agriculture (-4.8%), oil and gas extraction (-3.5%) and primary metal to metal product manufacturing (-1.2%).

Falls in the prices received for meat and meat product manufacturing (-4.5%), petroleum and coal product manufacturing (-1.4%) and basic non-ferrous metal products (-1.4%) drove the decrease in the prices received for produced articles primary to the manufacturing industries. Major contributors to these falls were beef and veal, diesel and precious metal recovery. Partly offsetting these falls were rises in the prices received for basic chemical manufacturing (+9.1%), dairy product manufacturing (+2.6%) and beverage manufacturing (+1.7%).

CONSTRUCTION INDUSTRIES PRODUCER PRICE INDEXES

MATERIALS USED IN HOUSE BUILDING

The price index of materials used in house building rose 0.2% in the September quarter 2011. This follows a rise of 1.2% in the June quarter 2011. The most significant contributors this quarter were rises in the prices paid for concrete, cement and sand (+1.9%), ceramic products (+0.7%) and other materials (+0.5%). Partly offsetting these rises were falls in the prices paid for Timber, board and joinery (-0.5%).

All capital cities except for Sydney (-0.2%), Brisbane (-0.2%) and Perth (-0.1%) rose in the September quarter 2011, with price increases ranging from Melbourne (+0.6%) to Hobart (+1.1%).

Through the year to the September quarter 2011 the materials used in house building price index rose 2.1%. This rise was mainly attributed to increases in the prices paid for concrete, cement and sand (+9.4%), ceramic products (+4.5%) and other metal products (+1.9%).

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

Division E, Subdivision 30 - Building construction fell 0.2% and Class 3101 - Road and bridge construction fell 0.1% for the September quarter 2011.

Subdivision 30 - Building construction was driven by falls in the prices received for Class 3019 - Other residential building construction (-0.5%) which was mainly influenced by Queensland (-2.1%), Class 3011 - House construction (-0.3%) which was mainly influenced by Queensland (-1.6%) and Class 3020 - Non-residential building construction (-0.1%) which was mainly influenced by Victoria (-0.6%).

Through the year to the September quarter 2011 the price index of Subdivision 30 - Building construction recorded a rise of 1.9% driven by increases in the prices received for Class 3020 - Non-residential building construction (+2.2%), Class 3019 - Other residential building construction (+1.3%), and Class 3011 - House construction (+1.9%).

The price index for Class 3101 - Road and bridge construction fell 0.1% for the September quarter 2011 which was mainly influenced by Queensland (-2.4%) and South Australia (-0.1%).

Through the year to the September quarter 2011, Class 3101 - Road and bridge construction rose 4.8%.

SERVICE INDUSTRIES PRODUCER PRICE INDEXES

DIVISION I - TRANSPORT, POSTAL AND WAREHOUSING

Division I - Transport, postal and warehousing recorded rises for the September quarter 2011 in the prices received for Group 471 - Rail freight transport (+4.0%), Group 510 - Postal and courier pick-up and delivery services (+2.6%) and Group 521 - Water transport support services (+1.7%).


DIVISION J - INFORMATION MEDIA AND TELECOMMUNICATIONS

Division J - Information media and telecommunications recorded rises for the September quarter 2011 in the prices received for Group 541 - Newspaper, periodical, book and directory publishing (+1.9%) (driven by Class 5411 - Newspaper publishing (+2.2%) and Class 5412 - Magazine and other periodical publishing (+1.1%)) and Group 592 - Data processing, web hosting and electronic information storage services (+0.9%) (driven by Class 5922 - Electronic information storage services (+2.5%)).


DIVISION L - RENTAL HIRING AND REAL ESTATE SERVICES

Division L - Rental, hiring and real estate services recorded rises for the September quarter 2011 in the prices received for Class 6712 - Non-residential property operators (+0.6%). Partly offsetting these rises were falls in the prices received for Group 672 - Real estate services (-1.6%).


DIVISION M - PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES

Division M - Professional, scientific and technical services recorded rises for the September quarter 2011 in the prices received for Group 692 - Architectural, engineering and technical services (+3.8%) (driven by Class 6923 - Engineering design and engineering consulting services (+5.0%)), Group 693 - Legal and accounting services (+2.8%) (driven by Class 6931 - Legal services (+4.0%)) and Class 6962 - Management advice and related related consulting services (+3.0%).


DIVISION N - ADMINISTRATIVE AND SUPPORT SERVICES

Division N - Administrative and support services recorded rises for the September quarter 2011 in the prices received for Group 729 - Other administrative services (+2.7%) (driven by Class 7293 - Credit reporting and debt collection services (+6.5%), Group 721 - Employment services (+1.9%) (driven by Class 7212 - Labour supply services (+2.0%) and Group 731 - Building cleaning, pest control and gardening services (+2.0%) (driven by Class 7311 - Building and other industrial cleaning services (+2.3%).


DIVISION O - PUBLIC ADMINISTRATION AND SAFETY

Division O - Public administration and safety recorded rises for the September quarter 2011 in the prices received for Class 7712 - Investigation and security services (+2.0%).


DIVISION S - OTHER SERVICES

Division S - Other services recorded rises for the September quarter 2011 in the prices received for Class 9533 - Parking services (+1.7%).