ADDITIONAL COMMENTARY


MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES

During the June quarter 2011, the prices paid by manufacturers for material inputs increased 3.7%, while the prices received for their outputs increased 0.9%. Through the year to June quarter 2011, prices of material inputs increased 9.5%, while prices received for outputs increased 3.6%.

Rises in the prices paid for products from oil and gas extraction (+15.4%), metal ore mining (+4.8%) and agriculture (+4.5%) drove the increases in the cost of materials used in the manufacturing industries. Major contributors to these price rises were crude oil, silver and milk. Partly offsetting these rises were falls in the prices paid for transport equipment (–4.5%).

The increase in the prices received for produced articles primary to the manufacturing industries was mainly due to rises in the prices of outputs primary to petroleum and coal product manufacturing (+9.0%), cement, lime, plaster and concrete product manufacturing (+3.9%) and basic ferrous metal manufacturing (+1.9%). Major contributors to these price rises were automotive fuel, ready mixed concrete and steel sheet. Partly offsetting these rises were falls in the prices received for outputs primary to basic non–ferrous metal manufacturing (–3.5%), basic non–ferrous metal product manufacturing (–3.9%) and basic chemical manufacturing (–3.5%).

CONSTRUCTION INDUSTRIES PRODUCER PRICE INDEXES

MATERIALS USED IN HOUSE BUILDING

The price index of materials used in house building increased by 1.2% in the June quarter 2011. This follows an increase of 0.1% in the March quarter 2011. The most significant contributors this quarter were rises in the prices paid for concrete, cement and sand (+6.4%), other materials (+1.3%), ceramic products (+1.4%), other metal products (+0.9%) and steel products (+2.5%).

All capital cities except for Hobart (–0.9%) increased in the June quarter 2011, with price rises ranging from Brisbane (+0.7%) to Adelaide and Sydney (+1.7%).

Through the year to June quarter 2011 the materials used in house building price index increased by 2.2%. This increase was mainly attributed to rises in the prices paid for ceramic products (+4.8%), concrete, cement and sand (+7.7%), other metal products (+1.9%), timber board and joinery (+0.9%), electrical equipment (+7.3%), plumbing products (+2.3%) and other materials (+0.6%).

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

Division E, Subdivision 30 – Building construction recorded an increase of 1.1% and Class 3101 - Road and bridge construction recorded an increase of 3.8% for the June quarter 2011. Subdivision 30 - Building construction was driven by rises in the prices received for Class 3020 - Non-residential building construction (+1.7%) which was mainly influenced by Victoria (+4.1%), Class 3019 - Other residential building construction (+1.7%) which was mainly influenced by Victoria (+5.6%) and Class 3011 House construction (+0.6%) which was mainly influenced by New South Wales (+1.1%).

Through the year to June quarter 2011 the price index of Subdivision 30 – Building construction recorded an increase of 3.1% driven by rises in the prices received for Class 3020 – Non–residential building construction (+3.6%), Class 3019 – Other residential building construction (+3.3%), and Class 3011 – House construction (+2.6%).

The price index for Class 3101 – Road and bridge construction recorded a price increase of 3.8% for the June quarter 2011 which was mainly driven by the rises in prices received for New South Wales (+4.1%), Victoria (+5.0%), Queensland (+2.6%), Western Australia (+3.3%) and South Australia (+2.4%).

Through the year to June quarter 2011, Class 3101 – Road and bridge construction increased by 5.4%.

SERVICE INDUSTRIES PRODUCER PRICE INDEXES

DIVISION I - TRANSPORT, POSTAL AND WAREHOUSING

Division I – Transport, postal and warehousing recorded increases for the June quarter 2011 in the price indexes for Group 461 – Road freight transport (+2.8%), Group 471 – Rail freight transport (+2.1%) and Group 481 – Water freight transport (+3.2%).


DIVISION J - INFORMATION MEDIA AND TELECOMMUNICATIONS

Division J – Information media and telecommunications recorded increases for the June quarter 2011 in the price indexes for Group 541 – Newspaper, periodical, book and directory publishing (+0.3%) (driven by Class 5411 – Newspaper publishing (+0.4%) and Class 5412 – Magazine and other periodical publishing (+0.3%)) and Group 592 – Data processing, web hosting and electronic information storage services (+0.7%) (driven by Class 5921 – Data processing and web hosting services (+0.7%) and Class 5922 – Electronic information storage services (+0.7%)).


DIVISION L - RENTAL HIRING AND REAL ESTATE SERVICES

Division L – Rental, hiring and real estate services recorded increases for the June quarter 2011 in the price indexes for Group 672 – Real estate services (+0.3%) and Class 6712 – Non–residential property operators (+0.8%).


DIVISION M - PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES

Division M – Professional, scientific and technical services recorded decreases for June quarter 2011 in the price indexes for Group 695 – Market research and statistical services (–1.0%) and Class 6962 – Management advice and related consulting services (–0.7%).


DIVISION N - ADMINISTRATIVE AND SUPPORT SERVICES

Division N – Administrative and support services recorded increases for the June quarter 2011 in the price indexes for Group 731 – Building cleaning, pest control and gardening services (+3.8%) driven by Class 7311 – Building and other industrial cleaning services (+4.2%).


DIVISION O - PUBLIC ADMINISTRATION AND SAFETY

Division O – Public administration and safety recorded no movement for the June quarter 2011.


DIVISION S - OTHER SERVICES

Division S – Other services recorded no movement for the June quarter 2011.