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Producer Price Indexes, Australia

Contains a range of producer price indexes, economy-wide indexes presented in a stage of production framework and measures for specific industries

Reference period
September Quarter 2019
Released
1/11/2019

Key statistics

  • Final demand (excluding exports) rose 0.4%
  • Intermediate demand rose 0.2%
  • Preliminary demand rose 0.2%

Main features

Final demand (excluding exports) rose 0.4% this quarter, due to:

  • Heavy and civil engineering construction (+0.6%), Dairy product manufacturing (+4.1%) and Sheep, beef cattle and grain farming; and dairy cattle farming (+5.2%) due to higher meat prices.
  • Offsetting contributors were Petroleum refining and petroleum fuel manufacturing (-3.9%), Other transport equipment manufacturing (-2.0%) and Other agriculture (-1.0%).
  • Rose 1.6% over the last twelve months.
     

Intermediate demand rose 0.2% this quarter, due to:

  • Textile, leather, clothing and footwear manufacturing (+2.1%), Architectural, engineering and technical services (+1.6%) and Legal and accounting services (+1.4%).
  • Offsetting contributors were Electricity supply; gas supply; and water supply, sewerage and drainage services (-1.9%), Oil and gas extraction (-6.5%) and Petroleum refining and petroleum fuel manufacturing (-4.6%).
  • Rose 0.6% over the last twelve months.
     

Preliminary demand rose 0.2% this quarter, due to:

  • Textile, leather, clothing and footwear manufacturing (+2.1%), Metal ore mining (+11.2%) and Basic non-ferrous metal manufacturing (+5.3%).
  • Offsetting contributors were Electricity supply; gas supply; and water supply, sewerage and drainage services (-1.9%), Petroleum refining (-5.3%) and Sheep, beef cattle and grain farming; and dairy cattle farming (-5.3%) due to falling wool prices.
  • Rose 0.9% over the last twelve months.

Key figures

 Jun 19 Qtr to Sep 19 QtrSep 18 Qtr to Sep 19 Qtr
Stage of production% change% change
Final demand (excl. exports)
0.4
1.6
Domestic
0.5
1.5
Imports
0.4
2.6
Intermediate demand
0.2
0.6
Domestic
0.2
0.8
Imports
0.4
0.4
Preliminary demand
0.2
0.9
Domestic
0.1
0.9
Imports
0.5
0.8
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Index reference period: 2011-12 = 100.0
 

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Changes in this issue

The Producer Price Indexes, Australia (cat. no. 6427.0) publication has published 1811 Industrial gas manufacturing in Table 12 Output of the manufacturing industries, division, subdivision, group and class index numbers, despite the notice placed in the June quarter publication.

For any questions or feedback relating to this change, please contact us at prices.statistics@abs.gov.au. The ABS Privacy Policy outlines how the ABS will handle any personal information that you provide to us.

Changes in future issues

The Australian Bureau of Statistics (ABS) has undertaken a review of the Producer Price Index (PPI) Stage of Production (SOP) outputs. As a result, the ABS is proposing discontinuing the SOP time series from December 2019 quarter.

The consultation process of the review identified more detailed analysis and coverage of industry indexes is more desired than SOP outputs. The ABS will focus its effort to enhancing the industry indexes and expanding coverage of the PPI's.

The discontinued tables and data cubes will include:

  • Tables 1, 2, 3, 4 and 10. Stage of Production, Index Numbers and Percentage Changes
  • Table 5 Stage of Production: Contribution to Final demand index by industry and source - index points
  • Table 6 Stage of Production: Contribution to Domestic Final demand index by industry and destination - index points
  • Table 7 Stage of Production: Contribution to Imported Final demand index by industry and destination - index points
  • Table 8 Stage of Production: Contribution to Intermediate demand index by industry and source - index points
  • Table 9 Stage of Production: Contribution to Preliminary demand index by industry and source - index points


For any questions or feedback relating to this change, please contact us at prices.statistics@abs.gov.au. The ABS Privacy Policy outlines how the ABS will handle any personal information that you provide to us.

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 ABS has published the quarterly Producer Price Index for the Output of the Retail Trade Price Index (RTPI) from 25 February 2014. The RTPI is released as an additional update of the Producer Price Indexes, Australia publication (ABS cat. no. 6427.0). The RTPI will be released in electronic format as a data cube on the ABS website on 26 November 2019.

Quarterly changes to industries

Construction industries

Input to the house construction industry rose 0.3% this quarter, due to:

General price rises for:

  • Other materials (+1.8%).
  • Electrical equipment (+1.3%).
  • Ceramic products (+1.1%).
     

The main contributing cities were:

  • Melbourne (+0.8%), due to plaster products and aluminium windows and doors.
  • Perth (+0.2%), due to electric cable and conduit and plaster products.
  • Adelaide (+0.3%), due to electric cable and conduit and paint and other coatings.
  • Offset by a fall in Hobart (-0.2%), due to ready mixed concrete and structural softwood.
     
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Over the last twelve months Inputs to House construction rose 1.0%, due to rises in prices for:

  • Other materials (+2.8%).
  • Electrical equipment (+5.6%).
  • Other metal products (+1.0%).
     

Output of the construction industries:

Subdivision 30 - Building construction showed no change this quarter and rose 1.0% over the last twelve months.

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Class 3020 - Non-residential construction rose 0.1%, due to increases in site, material and labour costs:

  • Australian Capital Territory (+0.8%), due to material and labour price pressures.
  • Tasmania (+0.6%), due to rising pricing pressures. The Hobart market remained strong allowing suppliers and builders to pass on costs.
  • South Australia (+0.3%), due to material and labour price pressures.
  • Over the last twelve months Non-residential building construction rose 1.7%.
     

Class 3019 - Other residential building construction rose 0.2%, due to increases in site, material and labour costs:

  • Queensland (+0.8%), due to increases in input costs such as insurance and materials.
  • Australian Capital Territory (+0.7%), due to material and labour price pressures.
  • Tasmania (+0.6%), due to rises in both materials and labour resulting from limited availability in the market.
  • Over the last twelve months Other residential building construction rose 2.1%.
     

Offsetting the rise was a fall in Class 3011 - House construction (-0.2%), due to a softening housing market as a result of tighter lending restrictions:

  • New South Wales (-0.8%), due to builders increasing promotional activity, having a downward impact on prices.
  • South Australia (-0.7%) and Victoria (-0.2%), due to builders increasing promotional activity and reduced pricing.
  • Over the last twelve months House construction fell 0.8%.
     

Subdivision 31 - Heavy and civil engineering construction rose 0.6%, due to annual price reviews on materials and services:

  • Class 3109 - Other heavy and civil engineering construction (+0.6%).
  • Class 3101 - Road and bridge construction (+0.4%).
  • Over the last twelve months Other heavy and civil engineering construction rose 2.8% and Road and bridge construction rose 1.7%.
  • Over the last twelve months Subdivision 31 - Heavy and Civil engineering construction rose 2.6%.

Mining industries

Input to the coal mining industry rose 0.3% this quarter, due to:

  • Professional, scientific and technical services due to annual and mid year rate reviews.
  • Over the last twelve months Input to the coal mining industry rose 2.0%.
     
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Output of the mining industries

Prices received for Gas extraction, Domestic rose 2.1%, due to global crude oil prices.

  • Domestic, East coast market rose 2.1% and,
  • Domestic, Western Australia rose 1.9%.
  • Over the last twelve months Gas extraction, Domestic rose 3.7%.
     

Manufacturing industries

Input to the manufacturing industries rose 2.0% this quarter, due to:

  • Metal ore mining manufacturing (+13.8%), due to increased gold prices driven by economic uncertainty and increased iron ore prices affected by limited international supply.
  • Agriculture to manufacturing (+3.2%) and Food product manufacturing (+2.1%), due to rises in beef prices driven by strong export demand.
  • Over the last twelve months Input to the Manufacturing industries rose 5.0%.
     
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Output of the manufacturing industries rose 1.1% this quarter, due to:

  • Basic non-ferrous metal manufacturing (+16.5%), due to rises in gold prices driven by economic uncertainty.
  • Cheese and other dairy products (+4.9%), due to rises in butter prices driven by supply constraints and increased demand.
  • Meat processing (+3.3%), due to increased lamb prices as a result of high export demand.
  • Over the last twelve months Output of the Manufacturing industries rose 3.3%.
     
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Service industries

Output of the services industries

Accommodation and food services rose, driven by prices received for:

  • Group 440 - Accommodation services (+1.1%), due to a seasonal increase in demand following the winter season slowdown.
     

Transport, postal and warehousing industries rose, driven by prices received for:

  • Group 461 - Road freight transport services (+0.5%), due to toll road increases and contract indexation.
  • Class 4622 - Urban bus transport (including tramway) (+1.7%), due to an increase in some fares for public transport.
     

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

  • Group 661 - Motor vehicle and transport equipment rental and hiring (+6.8%), due to higher demand from the household sector during the July school holidays.
  • Group 6712 - Non-residential property operators (+0.5%), due to continued strength in the Melbourne industrial and office property markets.
  • Partly offsetting is Group 672 - Real estate services (-1.0%), due to continued weakness in the residential property market and strong competitive pressures.
     

Professional, scientific and technical services industries rose, driven by prices received for:

  • Group 692 - Architectural, engineering and technical services (+1.6%), due to financial year rate and contract reviews.
  • Group 693 - Legal & accounting services (+1.3%), due to increased business costs and financial year rate reviews.
     

Health care and social assistance industries rose, driven by prices received for:

  • Group 851 - Medical services (+1.2%), due to indexation of some categories of the Medical Benefits Schedule from 1st July 2019.
  • Group 871 - Child care services (+2.5%), due to a rise in fees and increased wage costs.

Data downloads - time series spreadsheets

Tables 1, 2, 3, 4 and 10. Stage of production, 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

Data downloads - data cubes

Table 5. Stage of production: contribution to final demand index by industry and source - index points

Table 6. Stage of production: contribution to domestic final demand index by industry and destination - index points

Table 7. Stage of production: contribution to imported final demand index by industry and destination - index points

Table 8. Stage of production: contribution to intermediate demand index by industry and source - index points

Table 9. Stage of production: contribution to preliminary demand index by industry and source - 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

Table 31. Producer price index for the output of the retail trade industry, Australia, index numbers and percentage changes view additional information

Added 26/11/2019 - This data cube contains the Producer Price Index for the Output of the Retail Trade Industry, also known as the Retail Trade Price Index (RTPI). The RTPI is part of the stand-alone producer price indexes relating to specific industries within the Australian economy. Due to timing constraints, the RTPI is published after the release of the Producer Price Indexes, Australia (cat. no. 6427.0).

History of changes

Show all

26/11/2019 - Additional data cube. This data cube contains the Producer Price Index for the Output of the Retail Trade Industry, also known as the Retail Trade Price Index (RTPI). The RTPI is part of the stand-alone producer price indexes relating to specific industries within the Australian economy. Due to timing constraints, the RTPI is published after the release of the Producer Price Indexes, Australia (cat. no. 6427.0).