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
September 2020
Released
30/10/2020

Key statistics

Final demand (excluding exports)

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

Main features

Final demand (excluding exports)

  • Rises in child care services (+48.7%), petroleum refining and petroleum fuel manufacturing (+10.7%), and commercial fishing (+12.5%).
  • Falls in computer and electronic equipment (-7.7%), other transport equipment (-6.0%) and clothing manufacturing (-8.4%).
 Jun Qtr 20 to Sep Qtr 20Sep Qtr 19 to Sep Qtr 20
Final demand% change% change
Final demand (excl. exports)0.4-0.4

Index reference period: 2011-12 - 100.0.

Changes in this issue

The September quarter 2020 issue of the Producer Price Indexes includes re-weighted price indexes for:

  • 3011 Inputs to House Construction
  • Outputs of the manufacturing industries - subdivision 17, Petroleum and coal product manufacturing

​​​​​​​

From the September quarter 2020, additional series have been included in the Time Series Spreadsheets.

Table 13. Input to the Manufacturing industries, division and selected industries, index numbers will include:

  • Basic non-ferrous metals

Table 12. Output of the Manufacturing industries, division, subdivision, group and class index numbers will resume publishing:

  • 1312 Natural textile manufacturing

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 0.2%, due to:

General price rises for:

  • Ceramic products (+2.2%)
  • Other metal products (+0.4%)
  • Steel products (+1.5%)

 

Offset by:

  • Other materials (-0.4%)
  • Cement products (-1.2%)

 

The main contributing capital cities reflect increased supplier prices:

  • Melbourne (+0.2%), due to timber doors and other electrical equipment.
  • Sydney (+0.2%), due to ceramic tiles and steel beams and sections.
  • Adelaide (+0.8%), due to cupboards and built in furniture and metal roofing and gutters.
  • Brisbane (+0.1%), due to terracotta tiles and plaster products.
  • Perth (+0.1%), due to insulation and timber doors.
  • Hobart showed no overall changes.

Over the past twelve months Inputs to House construction rose 1.7%, due to rises in prices for:

  • Plumbing products (+2.0%)
  • Other metal products (+0.6%)
  • Cement products (+3.5%)

Output of the construction industries:

Subdivision 30 - Building construction showed no change this quarter and rose 0.3% over the past twelve months.

Class 3011 - House construction rose 0.6%, driven by:

  • House builders passing through higher input costs and increased base prices amid increased enquires linked to the government HomeBuilder program.
  • Western Australia (+4.2%)
  • Victoria (+0.7%)
  • Over the past twelve months House construction rose 1.7%.
     

Class 3019 - Other residential building construction fell 0.4%, driven by reduced margins to remain competitive in:

  • South Australia (-2.7%).
  • Queensland (-0.9%).
  • New South Wales (-0.2%).
  • Over the past twelve months Other residential building construction fell 0.4%.
     

Class 3020 - Non-residential construction fell 0.2%, driven by reduced margins to remain competitive in:

  • South Australia (-2.8%).
  • Queensland (-0.8).
  • Over the past twelve months Non-residential building construction fell 0.1%.
     

Subdivision 31 - Heavy and civil engineering construction rose 0.1%, driven by:

  • Class 3101 - Road and bridge construction rose 0.3%, due to increases in bitumen and diesel fuel following global crude oil prices.
  • Class 3109 - Other heavy and civil engineering construction rose 0.1%, due to increased margins and wages.
  • Over the past twelve months Other heavy and civil engineering construction rose 0.9% and Road and bridge construction fell 0.7%.
  • Over the past twelve months Subdivision 31 - Heavy and Civil engineering construction rose 0.5%.

Mining industries

Input to the coal mining industry rose 0.9%, due to:

  • Petroleum and coal product manufacturing, driven by rises in global crude oil prices.
  • Over the past twelve months Input to the coal mining industry fell 1.6%.

Output of the mining industries

Prices received for Gas extraction, Domestic fell 9.8%, following global crude oil prices:

  • Domestic, East coast market fell 10.0%.
  • Domestic, Western Australia fell 9.2%.
  • Over the past twelve months Gas extraction, Domestic fell 14.7%.

Manufacturing industries

Input to the manufacturing industries rose 0.2%, due to:

  • Metal ore mining to manufacturing (+6.6%), due to increased investor demand for silver and gold.
  • Oil and gas extraction to manufacturing (+15.1%), due to price increases in global crude oil prices.
  • Primary metal and metal product to manufacturing (+1.6%), due to increased global construction and manufacturing demand for copper.
  • Over the past twelve months Input to the Manufacturing industries fell 0.3%.

Output of the manufacturing industries fell 0.3%, due to:

  • Meat processing (-4.9%), due to lower prices for lower quality cuts of beef.
  • Cheese and other dairy product manufacturing (-2.7%), due to decreased demand from the Food services industry under COVID-19 restrictions.
  • Aluminium smelting (-8.5%), due to a strengthening of the Australian dollar against the United States dollar.
  • Over the past twelve months Output of the Manufacturing industries fell 0.3%.

Services industries

Output of the services industries

Accommodation and food services fell, driven by:

  • Group 451 - Cafes, restaurants and takeaway food services (-0.4%), due to price falls in takeaway food and food delivery services.
  • Over the past twelve months Cafes, restaurants and takeaway food services rose 1.7%.

 

Offset by:

  • Group 440 - Accommodation services (+0.3%), due to easing restrictions and increased demand after reopening of some state and territory boarders.
  • Over the past twelve months Accommodation services fell 9.6%.


Transport, postal and warehousing industries fell, driven by:

  • Group 461 - Road freight transport (-1.4%), due to falls in fuel prices.
  • Group 481 - Water freight transport (-7.8%), due to the appreciation of the Australian dollar, lower fuel prices and an increased number of ports reopening.
  • Over the past twelve months Road freight transport fell 1.2%.
  • Over the past twelve months Water freight transport rose 6.9%.


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

  • Class 6712 - Non-residential property operators (-2.6%), due to increased sublease supply for office spaces and reduced demand for retail space.
  • Over the past twelve months Non-residential property operators fell 2.6%

 

Health care and social assistance industries rose, driven by:

  • Group 871 – Child care services (+49.0%), due to the reintroduction of the Child Care Subsidy and associated out of pocket expenses to households, resulting in a rise in prices received for child care services. The Early Childhood Education and Care Relief Package which waived out of pocket costs was discontinued.
  • Over the past twelve months Child care services fell 4.6%.

 

The Output of the other service industries rose, driven by:

  • Class 9533 Parking services (+5.6%), due to reinstated parking fees following discounting and free parking from the June 2020 quarter due to COVID-19 shutdowns.
  • Over the past twelve months Parking services fell 5.6%.

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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