ADDITIONAL COMMENTARY


MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES

During the September quarter 2010, the prices paid by manufacturers for material inputs increased by 1.0%, while the prices received for their outputs decreased by 0.2%. Through the year to September quarter 2010, prices of material inputs increased by 3.5%, while prices received for outputs increased by 1.5%.

Rises in prices paid for products from agriculture (+3.6%), coal mining (+12.6%) and metal ore mining (+0.8%) drove the increases in the cost of materials used in the manufacturing industries. Major contributors to these price rises were milk, coal and iron ore. Partly offsetting these rises were falls in the prices paid for oil and gas extraction (-0.7%).

The decrease in prices received for produced articles primary to the manufacturing industries was mainly due to falls in the prices of outputs primary to petroleum refining and petroleum fuel manufacturing (-1.9%), sugar manufacturing (-12.6%) and alumina production (-6.9%). Major contributors to these price falls were unleaded petroleum, raw sugar and alumina. Partly offsetting these falls were rises in the prices received for outputs primary to soft drink, cordial and syrup manufacturing (+11.7%), industrial gas manufacturing (+10.4%) and meat processing (+2.4%).

CONSTRUCTION INDUSTRIES PRODUCER PRICE INDEXES

MATERIALS USED IN HOUSE BUILDING

The price index of Materials used in house building increased by 0.4% in the September quarter 2010. This follows an increase of 1.1% in the June quarter 2010. The most significant contributors this quarter were rises in prices paid for timber, board and joinery (+0.9%), ceramic products (+1.0%), plumbing products (+0.6%), concrete, cement and sand (+0.3%) and cement products (+0.6%).

Brisbane (+1.5%) contributed the most to the overall weighted average of 6 capital cities quarterly movement, followed by Adelaide (+0.5%), Perth (+0.1%), Melbourne (+0.1%), Sydney (+0.1%) and Hobart (+0.1%).

Through the year to September quarter 2010 the Materials used in house building price index increased by 1.8%. This increase was mainly attributed to rises in the prices paid for timber, board and joinery (+2.8%), ceramic products (+4.6%), other metal products (+1.6%), other materials (+1.1%), plumbing products (+2.6%) and cement products (+3.2%). Partly offsetting these rises were falls in the prices paid for steel products (-4.3%) and concrete, cement and sand (-0.5%).

SELECTED OUTPUT OF DIVISION E - CONSTRUCTION

The price indexes of selected output of Division E - Construction includes Subdivision 30 - Building construction recorded an increase of 0.9% for the September quarter 2010.

This was driven by rises in prices received for Class 3019 - Other residential construction n.e.c. (+1.4%), which was mainly influenced by Victoria (+5.9%), Class 3020 - Non-residential construction (+1.4%) and Class 3011 - House construction (+0.4%).

Through the year to September quarter 2010 the price index of Subdivision 30 - Building construction recorded an increase of 2.2% driven by rises in prices received for Class 3011 - House construction (+2.5%), Class 3019 - Other residential construction (+1.7%) and Class 3020 - Non-residential construction (+2.0%).

The price index for Class 3101 - Road and bridge construction recorded a price increase of 0.4% for the September quarter 2010 which was mainly driven by rises in prices received for Queensland (+0.9%) and Western Australia (+1.1%).

Through the year to September quarter 2010, Class 3101 - Road and bridge construction increased by 2.3%.



SERVICE INDUSTRIES PRODUCER PRICE INDEXES

SELECTED SERVICES PRIMARY TO DIVISION I - TRANSPORT, POSTAL AND WAREHOUSING

The price indexes of selected services primary to Division I - Transport, postal and warehousing recorded increases for the September quarter 2010. This was driven by rises in prices received for Group 510 - Postal and courier pick-up and delivery services (+4.6%) driven by Class 5101 - Postal services (+6.4%), Group 471- Rail freight transport (+4.4%) and class 5021- Pipeline transport (+2.1%). Partly offsetting these rises were falls in prices received for Class 4810 - Water freight transport (-1.1%).


SELECTED SERVICES PRIMARY TO DIVISION J - INFORMATION MEDIA AND TELECOMMUNICATIONS

The price indexes of selected services primary to Division J - Information media and telecommunication services recorded increases for the September quarter 2010. This was driven by rises in prices received for Group 541 - Newspaper, periodical, book and directory publishing (+0.9%) driven by Class 5411 - Newspaper publishing (+1.1%) and Class 5412 - Magazine and other periodical publishing (+0.5%).

Partly offsetting these rises were falls in prices received for Group 592 - Data processing, web hosting and electronic information storage services of (-1.1%) driven by Class 5922 - Electronic information storage services (-3.1%).


SELECTED SERVICES PRIMARY TO 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 increases for the September quarter 2010. This was driven by rises in prices received for Subdivision 66 - Rental and hiring services (except real estate) (+0.8%) driven by Group 663 - Other goods and equipment rental and hiring (+1.8%). Also showing increases were rises in prices received for Group 672 - Real estate services (+1.7%) and Class 6712 - Non-residential property operators (+0.1%).

Partly offsetting these rises were falls in prices received for Group 661 - Motor vehicle and transport equipment rental and hiring (-0.9%).


SELECTED SERVICES PRIMARY TO DIVISION M - PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES

The price indexes of selected services primary to Division M - Professional, scientific and technical services recorded increases for the September quarter 2010. This was driven by rises in prices received for Group 693 - Legal and accounting services (+1.5%), driven by Class 6931 - Legal services (+2.5%), Class 6962 - Management advice and related consulting services (+1.8%), Group 691 - Scientific research services (+1.3%), Group 695 - Market research and statistical services (+0.9%) and Group 692 - Architectural, engineering and technical services (+0.6%), driven by Class 6923 - Engineering design and engineering consulting services (+0.9%).

Partly offsetting these rises were falls in prices received for Group 700 - Computer system design and related services (-0.3%).


SELECTED SERVICES PRIMARY TO DIVISION N - ADMINISTRATIVE AND SUPPORT SERVICES

The price indexes of selected services primary to Division N - Administrative and support services recorded increases for the September quarter 2010. This was driven by rises in prices received for Group 721 - Employment services (+0.6%) driven by Class 7211 - Employment placement and recruitment services (+3.4%) and Group 731 - Building cleaning, pest control and gardening services (+2.7%) driven by Class 7311 - Building and other industrial cleaning services (+2.5%).


SELECTED SERVICES PRIMARY TO DIVISION O - PUBLIC ADMINISTRATION AND SAFETY

The price index of selected services primary to Division O - Public administration and safety recorded an increase for the September quarter 2010. This was driven by rises in prices received for Class - 7712 Investigation and security services (+0.2%).


SELECTED SERVICES PRIMARY TO DIVISION S - OTHER SERVICES

The price indexes of selected services primary to Division S - Other services recorded increases for the September quarter 2010. This was driven by rises in prices received for Class 9533 - Parking services (+4.6%) and Class 9422 - Electronic and precision equipment repair and maintenance (+0.8%).