ADDITIONAL COMMENTARY


MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES

During the June quarter 2010, the prices paid by manufacturers for material inputs increased by 2.5%, while the prices they received for their outputs increased by 1.2%. Through the year to June quarter 2010, prices of material inputs increased by 0.6%, while prices for outputs increased by 2.5%.

Price increases for products from metal ore mining (+8.8%), oil and gas extraction (+4.6%) and primary metal and metal product manufacturing (+1.5%) drove the increases in the cost of materials used in the manufacturing industries. Major contributors to these price increases were domestic gold bullion, imported crude oil and alumina. Partly offsetting these rises were decreases in the prices paid for products from transport equipment manufacturing (-1.4%) and pulp, paper and converted paper product manufacturing (-1.0%).

The increase in prices received for produced articles primary to manufacturing industries was mainly due to increases in the prices of outputs primary to basic non-ferrous metal manufacturing (+6.9%), petroleum and coal product manufacturing (+3.6%) and fertiliser and pesticide manufacturing (+5.8%). Major contributors to these price increases were precious metal recovery, kerosene and phosphatic fertilisers. Partly offsetting these rises were decreases in the prices received for outputs primary to structural metal product manufacturing (-3.8%) and basic ferrous metal product manufacturing (-9.6%).

CONSTRUCTION INDUSTRIES PRODUCER PRICE INDEXES

MATERIALS USED IN HOUSE BUILDING

The price index of materials used in house building increased by 1.1% in the June quarter 2010. This follows an increase of 0.3% in the March quarter 2010, an increase of 0.1% in the December quarter 2009 and a decrease of 0.8% in the September quarter 2009. The most significant increases this quarter were price rises for ceramic products (+3.3%), other metal products (+1.5%), timber, board and joinery (+0.7%), other materials (+0.6%), concrete, cement and sand (+0.8%) and cement products (+1.7%).

Melbourne (+1.5%) contributed the most to the overall weighted average of 6 capital cities quarterly movement, followed by Sydney (+1.4%), Perth (+0.8%), Brisbane (+0.6%), Adelaide (+0.6%) and Hobart (+0.9%).

Through the year to June quarter 2010, the materials used in house building price index increased by 0.7%. This rise was attributed to increases in the prices paid for ceramic products (+4.3%), other metal products (+2.2%), timber, board and joinery (+1.0%), other materials (+0.8%), cement products (+4.0%) and electrical equipment (+1.7%). Partly offsetting these rises were decreases in the prices paid for steel products (-11.7%) and concrete, cement and sand (-1.8%).

SELECTED OUTPUT OF DIVISION E - CONSTRUCTION

The price index for Subdivision 30 - Building construction recorded an increase of 0.4% for the June quarter 2010. This was driven by Class 3011 - House construction (+0.7%), which was mainly influenced by Victoria (+1.2%) where there were price increases for Class 3011 - House construction (+1.0%), Class 3020 - Non-residential construction (+1.4%) and Class 3019 - Other residential construction n.e.c. (+1.0%).

Through the year to June quarter 2010, Subdivision 30 - Building construction increased by 1.4%. This was driven by an increase in Class 3011 - House construction (+3.3%). Partly offsetting this rise were price decreases in Class 3019 - Other residential construction (-0.9%) and Class 3020 - Non-residential construction (-0.2%).

The price index for Class 3101 - Road and bridge construction recorded a price increase of 0.7% for the June quarter 2010 which was mainly driven by increases in NSW (+0.7%) and Victoria (+0.8%).

Through the year to June quarter 2010, Class 3101 - Road and bridge construction increased by 2.6%.


SERVICE INDUSTRIES PRODUCER PRICE INDEXES

SELECTED OUTPUT OF DIVISION I - TRANSPORT, POSTAL AND WAREHOUSING

The price indexes of selected services primary to Division I - Transport, postal and warehousing recorded price increases for the June quarter 2010 in Group 481 - Water freight transport (+3.3%) driven by Class 4810 - Water freight transport (+3.4%) and Group 461 - Road freight transport (+1.2%) driven by Class 4610 - Road freight transport (+1.2%). Also showing an increase was Class 5309 - Other warehousing and storage services (+1.5%).


SELECTED OUTPUT OF DIVISION J - INFORMATION MEDIA AND TELECOMMUNICATIONS

The price indexes of selected services primary to Division J - Information media and telecommunication services recorded a price increase for the June quarter 2010 in Group 592 - Data processing, web hosting and electronic information storage services (+3.2%) driven by Class 5922 - Electronic information storage services (+4.3%) and Class 5921 - Data processing and web hosting services (+2.4%). Also showing an increase was Group 541 - Newspaper, periodical, book and directory publishing (+0.2%) driven by Class 5411 - Newspaper publishing (+0.3%).


SELECTED OUTPUT OF DIVISION L - RENTAL HIRING AND REAL ESTATE SERVICES

The price indexes of selected services primary to Division L - Rental, hiring and real estate services recorded a price increase for the June quarter 2010 in Subdivision 66 - Rental and hiring services (except real estate) (+0.7%) driven by a price increase in Group 663 - Other goods and equipment hire (+1.6%). Also showing increases were Group 672 - Real estate (+3.3%) and Class 6712 - Non-residential property operators (+0.9%). Class 6712 - Non-residential property operators recorded the first percentage increase since the December quarter 2008.

Partly offsetting these rises was a decrease in Group 661 - Motor vehicle and transport equipment rental (-1.2%).


SELECTED OUTPUT OF DIVISION M - PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES

The price indexes of selected services primary to Division M - Professional, scientific and technical services recorded no change for the June quarter 2010. Groups recording increases were Group 693 - Legal and accounting services (+0.6%) driven by Class 6932 - Accounting services (+2.4%), Group 695 - Market research and statistical services (+0.3%) and Group 692 - Architectural, engineering and technical services (+0.2%) driven by Class 6921 - Architectural services (+1.4%).

This was offset by Class 6962 - Management advice and related consulting services (-0.8%).


SELECTED OUTPUT OF DIVISION N - ADMINISTRATIVE AND SUPPORT SERVICES

The price indexes of selected services primary to Division N - Administrative and support services recorded price increases for the June quarter 2010 in Group 721 - Employment services (+2.2%) driven by Class 7212 - Labour supply services (+1.6%) and Group 729 - Other administrative services (+0.4%) driven by Class 7293 - Debt and credit reporting (+0.6%).


SELECTED OUTPUT OF DIVISION O - PUBLIC ADMINISTRATION AND SAFETY

The price index of selected services primary to Division O - Public administration and safety recorded no change for the June quarter 2010.


SELECTED OUTPUT OF DIVISION S - OTHER SERVICES

The price indexes of selected services primary to Division S - Other services recorded price increases for the June quarter 2010 in Class 9533 - Parking services (+5.2%) and Class 9422 - Electronic and precision equipment repair and maintenance (+0.1%).