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Producer Price Indexes, Australia

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

Reference period
March 2021
Released
30/04/2021

Key statistics

Final demand (excluding exports)

  • Rose 0.4% this quarter.
  • Rose 0.2% over the past twelve months.

Quarterly change

Final demand (excluding exports)

  • Rises in Petroleum refining and petroleum fuel manufacturing (+20.6%), building construction (+0.5%) and accommodation (+5.8%).
  • Falls in Electronic equipment manufacturing (-5.3%), Other transport equipment manufacturing (-3.1%) and Furniture and Other Manufacturing (-1.7%).
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 Dec Qtr 20 to Mar Qtr 21Mar Qtr 20 to Mar Qtr 21
Final demand

% change

% change

Final demand (excl. exports)0.40.2
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Index reference period: 2011-12 - 100.0.

Rounding

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

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.

Construction

Input to the house construction industry

Input to the house construction industry rose 1.1%, due to:

  • Timber, board and joinery (+2.1%), driven by Cupboard and built in furniture (+2.0%), due to timber shortages amplified by increased demand from Federal Homebuilder and state-based grants.
  • Other metal products (+1.3%), driven by Aluminium windows and doors (+1.1%), due to higher material costs.
  • Plumbing products (+2.5%), driven by Plastic pipes and fittings (+9.1%), also due to higher material costs. 

Offset by:

  • Electrical equipment (-4.1%), driven by Electric cable and conduit (-5.3%).
  • Concrete, cement and sand (-1.4%), driven by Ready mixed concrete (-1.7%). 

 

Capital city movements (Territory prices are not sampled).

Increases in supplier prices were recorded in:

  • Adelaide (+2.8%), driven by Timber, board and joinery (+5.5%).
  • Melbourne (+1.7%), driven by Timber, board and joinery (+2.5%).
  • Brisbane (+1.1%), driven by Concrete, cement and sand (+8.6%).
  • Hobart (+0.8%) driven by Plumbing products (+0.8%).
  • Perth (+0.5%), driven by Timber, board and joinery (+1.6%).

Decreases in supplier prices were recorded in:

  • Sydney (-0.2%), due to Concrete, cement and sand (-5.9%) and Electrical equipment (-10.2%).
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Over the past twelve months Inputs to House construction rose 2.5%, due to rises in prices for:

  • Plumbing products (+3.0%)
  • Other metal products (+1.7%)
  • Cement products (+1.0%)

Output of the construction industry

Building construction rose 0.8% this quarter and 1.6% over the past twelve months.

Federal Homebuilder grants and government investment in infrastructure, coupled with state-based grants in Western Australia and Tasmania are increasing the demand for some trades in smaller, more isolated states due to the smaller pool of local skilled workers. 

The quarterly movement by class is:

  • House construction (+1.4%)
  • Non-residential construction (+0.4%)
  • Other residential building construction (+0.4%)
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House construction rose 1.4%, due to house builders capitalising on increased demand, passing through higher material costs in timber and steel, increased base prices and reduced bonus offers.

State price movements for the quarter were:

  • Western Australia (+5.1%)
  • South Australia (+2.4%)
  • Victoria (+1.5%)
  • Queensland (+1.5%)
  • Northern Territory (+0.3%)
  • Tasmania (+1.0%)
  • New South Wales (-0.4%)
  • Australian Capital Territory (-0.8%)

Over the past twelve months House construction rose 3.7%.

Non-residential construction and Other residential construction prices rose due to increases in trade and head contractor margins in Western Australia, Queensland and Tasmania. Increased demand for skilled trades, pushed up prices for securing labourers, and increased availability of jobs for tender allowed builders to pass on the increases in material and labour cost previously absorbed by a reduction in margins.  These increases were softened by New South Wales and Victoria due to tightening availability of work.

Other residential building construction rose 0.4%,

State price movements for the quarter were:

  • Tasmania (+5.2%)
  • Western Australia (+1.9%)
  • South Australia (+0.9%)
  • Queensland (+0.4%)
  • Northern Territory (+0.4%)
  • Australian Capital territory (+0.3%)
  • New South Wales (0.0%)
  • Victoria (0.0%)

Over the past twelve months Other residential building construction rose 0.1%. 

Non-residential construction rose 0.4%

State price movements for the quarter were:

  • Tasmania (+3.9%)
  • Western Australia (+1.9%)
  • South Australia (+0.8%)
  • Queensland (+0.7%)
  • Australian Capital territory (+0.3%)
  • Victoria (+0.1%)
  • Northern Territory (+0.1%)
  • New South Wales (0.0%)

Over the past twelve months Non-residential building construction rose 0.7%.

Heavy and civil engineering construction rose 0.3%:

  • Road and bridge construction fell 0.2%, due to falls in concrete.
  • Other heavy and civil engineering construction rose 0.4%, due to increased wages, plastic pipes and engineering design.

Over the past twelve months:

  • Heavy and Civil engineering construction rose 0.8%
  • Other heavy and civil engineering construction rose 1.0%
  • Road and bridge construction fell 0.1%

Mining industries

Input to the coal mining industry

Input to the coal mining industry rose 0.6%, due to:

  • Petroleum and coal product manufacturing, driven by an increase in diesel prices due to global crude oil prices and continued recovery in domestic demand for transport fuel.  

Over the past twelve months Input to the coal mining industry fell 1.9%.

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Output of the mining industry

Prices received for Gas extraction, domestic rose 4.6%, due to increases in global crude oil and Asian LNG spot prices:

  • Domestic, East coast market rose 5.4%
  • Domestic, Western Australia rose 0.3%

Over the past twelve months Gas extraction, Domestic fell 6.9%.

Manufacturing

Input to the manufacturing industry

Input to the manufacturing industries rose 2.2%, driven by:

  • Oil & gas extraction to manufacturing increasing 15.8%, due to domestic and imported crude oil prices. Driven by strong demand in China, optimism from COVID-19 vaccine rollouts and an increased production cut in Saudi Arabia.
  • Agriculture to manufacturing increasing 3.0%, due to increased beef cattle and sheep prices driven by herd building under improved weather conditions.
  • Primary metal and metal product to manufacturing increasing 3.1%, due to increased global demand for nickel and copper, optimism from COVID-19 vaccine rollouts, and supply disruptions in South America and the Asia-Pacific. 

Over the past twelve months Input to the manufacturing industries rose 1.8%.

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Output of the manufacturing industry

Output of the manufacturing industries rose 1.0%, driven by:

  • Petroleum refining and petroleum fuel manufacturing increasing 23.3%, due to increased global crude oil prices and continued recovery in domestic demand for transport fuel.
  • Copper, silver, lead and zinc smelting and refining increased 7.2%, due to increased global demand for copper.

Over the past twelve months Output of the Manufacturing industries remained flat.

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Services

Output of the service industries

Accommodation and food services rose, driven by: 

  • Accommodation services (+5.4%), due to increased interstate travel demand.
  • Cafes, restaurants and takeaway food services (+0.5%), due to recovering demand as COVID-19 restrictions on travel and gatherings are eased further.

Over the past twelve months Accommodation services rose 5.6%.

Over the past twelve months Cafes, restaurant and takeaway food services rose 1.5%.

Transport, postal and warehousing industries fell, driven by:

  • Water freight transport (-5.5%), due to falls in water freight export services as a result of the removal of some peak season surcharges and falls in export demand. Contributing to this fall was reduced demand for Australian beef exports.

 Over the past twelve months Water freight transport rose 7.0%.

Rental, hiring and real estate services industries rose, driven by: 

  • Passenger car rental and hiring (+23.6%), due to increased interstate travel demand and reduced fleet sizes compared to pre-COVID-19. Strong demand for new vehicles and worldwide car production disruptions have affected the ability of car hire companies to increase supply.
  • Non-residential property operators (+1.4%), due to convention centres restoring some of their prices back to pre-COVID-19 levels.

Over the past twelve months Passenger car rental and hiring rose 58.6%.

Over the past twelve months Non-residential property operators fell 4.5%.

Professional, scientific and technical services industries rose, driven by:

  • Computer system design and related services (+1.7%), due to strong market demand, particularly for services in cloud and security related services.
  • Engineering design and engineering consulting services (+1.5%), due to annual indexation of wages deferred from the September quarter 2020.
  • Accounting services (+1.5%), due to increases in charge out rates by small to medium firms.

Over the past twelve months Computer system design and related services rose 2.6%.

Over the past twelve months Engineering design and engineering consulting services rose 1.5%.

Over the past twelve months Accounting services rose 2.2%.

Higher Education in the Education and Training services industries fell, driven by:

  • Higher education, domestic (-1.8%), due to the Job-Ready Graduates Package which led to falls in student and government contributions for undergraduate students.

This was partly offset by:

  • Higher education, exports (+0.9%). Despite large falls in international student enrolments due to COVID-19, most universities have kept prices relatively stable.

Health care and social assistance industries rose, driven by: 

  • Child care services (+1.6%), due to calendar year fee increases and increased demand in Sydney.  

Over the past twelve months Child care services rose 3.3%.

Data downloads

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Previous catalogue number

This release previously used catalogue number 6427.0.

Using price indexes

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.

Changes in this release

There have been no changes to this quarter's release 

See the full history of changes.