Materials Used in Manufacturing Industries (Price Index of)

NAME OF ORGANISATION
Australian Bureau of Statistics (ABS)

OVERVIEW
This collection collects data on the movements in prices of materials used by manufacturers. Two collections have been produced from these data: 'Price Indexes of Materials Used in Manufacturing Industries' (MUMI) ; and 'Price Indexes of Copper Materials' (Coppermats).

The Price Indexes of Materials Used in Manufacturing Industries measure movements in the prices of materials (including fuels) used by establishments classified to the Manufacturing Division of ANZSIC. Indexes are compiled on a net sector basis for the Manufacturing Division of ANZSIC as a whole and separately for ANZSIC Sub-divisions and/or Groups of Manufacturing. In each case, the scope of the indexes relates to materials used in establishments within the defined manufacturing sector and sourced from establishments outside that sector.

The Price Indexes of Copper Materials measure movements in prices for copper materials used in the manufacture of three types of electrical equipment: Industrial electric motors; Distribution transformers; and Power transformers. In concept the Price Indexes of Copper Materials are a sub set of the Price Indexes of Materials Used in Manufacturing Industries.

Note: As of June quarter 2001 both of these indexes will be published in Producer Price Indexes, Australia (ABS Cat no. 6427.0).

PURPOSE
The main uses of the indexes are:

• in the calculation of constant price National Accounts estimates ie to deflate current price estimates.
• for economic analysis, in particular as indicators of future changes in prices of manufactured articles and of the source of price pressures in the economy.
• for contract adjustment purposes ie as the basis for "rise and fall" contracts.

• exclude materials which have been purchased by establishments in that sector from other establishments in that same sector;
• include materials produced by Australian establishments classified to other manufacturing sectors or other ANZSIC Divisions (eg Mining); and
• include imported materials (whether manufactured or not).

Conceptual framework
The Price Indexes of Materials Used in Manufacturing Industries (MUMI) measure the changes in prices of materials used by Australian manufacturing industry.

The MUMI is:

• a measure of pure price change (that is, it excludes the effects of any changes in quality and quantity)
• a measure of changes in transaction prices (price actually paid, not the list or recommended price)
• a chain of linked indexes with changes in composition and weighting made at regular intervals.

Classifications
The Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 provides the classification framework for the index.

Other concepts (summary)
All concepts have been noted in Conceptual Framework.

GEOGRAPHIC DETAIL
Australia

Comments and/or Other Regions
Information collected is sourced from across Australia but is not State specific.

COLLECTION FREQUENCY
Quarterly

Frequency comments
Up to, and including, June 1997 collection was monthly. From that date collection is quarterly.

COLLECTION HISTORY
MUMI was first published in April 1975 on a reference base of 1968-69 = 100.0. The index had a weighting pattern based on estimated manufacturing materials usage in 1971-72. Monthly index numbers for this first series were compiled for the period July 1968 to November 1985.

A second series was introduced in December 1985, with indexes on a reference base of 1984-85 = 100.0, and the indexes were linked to the previous serious. This second series had a weighting pattern based on estimated manufacturing materials usage in 1977-78.

The current indexes were introduced in July 1996 on a reference base of 1989-90 = 100.0 and linked to the previous series. The indexes composition and weighting pattern is based on estimated manufacturing materials usage in 1989-90.

Up to, and including, June 1997 collection was monthly. From that date collection is quarterly.

The indexes previously published in "Price Indexes of Copper Materials" were first published in the October 1972 issue of Price Indexes of Metallic Materials (ABS Cat no. 6410.0) as the Price Indexes of Copper Materials Used in the Manufacture of Electrical Equipment. In January 1986, the title of that publication was changed and the series for the other metallic materials (iron and steel, aluminium, copper and brass, and zinc) were transferred to MUMI.
The current indexes were introduced in June 1984 on a reference base of 1983-84 = 100.0. The indexes composition and weighting pattern is based on materials usage in 1982-83.
Up to, and including, June 1997 collection was monthly. From that date collection is quarterly.

DATA AVAILABILITY
Yes