Producer Price Indexes, Australia

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Contains a range of producer price indexes in the Australian economy, comprising mining, manufacturing, construction and services industries

Reference period
June 2020
Released
31/07/2020

Key statistics

Final demand (excluding exports)

  • fell 1.2% this quarter.
  • fell 0.4% over the past twelve months.

Main features

Final demand (excluding exports)

  • falls in petroleum refining and petroleum fuel manufacturing (-30.1%), child care services (-36.7%) and other agriculture (-6.4%).
  • rises in other transport equipment (+3.6%), computer and electronic equipment (+3.1%) and motor vehicle and motor vehicle part manufacturing (+1.2%).
     

Key figures

 Mar Qtr 20 to Jun Qtr 20Jun Qtr 19 to Jun Qtr 20
Final demand% change% change
Final demand (excl. exports)-1.2-0.4

Index reference period: 2011-12 - 100.0.

Changes in this issue

The June quarter 2020 issue of the Producer Price Indexes will include re-weighted price indexes for:

  • 3011 Outputs of house construction
  • 3019 Other residential building construction
  • 3020 Non-residential construction
     

Rounding

Any discrepancies between totals and sums of components in this publication are due to rounding.

Use of price indexes in contracts

Price indexes published by the Australian Bureau of Statistics (ABS) provide summary measures of the movements in various categories of prices over time. They are published primarily for use in Government economic analysis. Price indexes are also often used in contracts by businesses and government to adjust payments and/or charges to take account of changes in categories of prices (Indexation Clauses).

Use of Price Indexes in Contracts sets out a range of issues that should be taken into account by parties considering including an Indexation Clause in a contract using an ABS published price index.

Additional information

The compilation of the quarterly Producer Price Index for the Output of the Retail Trade Industry, normally released as an additional update of the Producer Price Indexes, Australia (ABS cat. No. 6427.0), has been paused indefinitely as a result of changing priorities within the ABS as a result of the COVID-19 pandemic.

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.
     

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.

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%.
     

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%.
     

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%.
     

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.
     

Data downloads - time series spreadsheets

Table 1. Final demand, index numbers and percentage changes.

Table 11. Input to the coal mining industry, index numbers and percentage changes

Table 12. Output of the manufacturing industries, division, subdivision, group and class index numbers

Table 13. Input to the manufacturing industries, division and selected industries, index numbers and percentage changes

Table 14. Input to the manufacturing industries, subdivision index numbers

Table 17. Output of the construction industries, subdivision and class index numbers

Table 18. Input to the house construction industry, six state capital cities, weighted average and city, index numbers and percentage changes

Table 20. Output of the accommodation and food services industries, group index numbers

Table 21. Output of the transport, postal and warehousing industries, group and class index numbers

Table 22. Output of the information media and telecommunications industries, group and class index numbers

Table 23. Output of the rental, hiring and real estate services industries, subdivision, group and class index numbers

Table 24. Output of the professional, scientific and technical services industries, group and class index numbers

Table 25. Output of the administrative and support services industries, group and class index numbers

Table 26. Output of the public administration and safety industries, group and class index numbers

Table 27. Output of the other services industries, group and class index numbers

Table 34. Output of the education and training industries, group and class index numbers

Table 35. Output of the health care and social assistance industries, group and class index numbers

Table 36. Output of the mining industries, index numbers

All time series spreadsheets

Data downloads - data cubes

Table 5 Final demand: contribution to final demand index by industry – index points

Table 28 Contribution to input to the manufacturing industries index, subdivision and index points

Table 29 Contribution to output of the manufacturing industries index, group index points

Table 30 Contribution to input to the house construction industry index, weighted average of six state capital cities, index points

Previous catalogue number

This release previously used catalogue number 6427.0.

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