PRICE INDEXES AND CONTRACT PRICE INDEXATION
JUNE QUARTER 2007 KEY FIGURES
 | Mar Qtr 07 to Jun Qtr 07 | Jun Qtr 06 to Jun Qtr 07 |
| STAGE OF PRODUCTION | % change | % change |
|
| Final (Stage 3) commodities (excl. exports) | 1.0 | 2.3 |
| Domestic | 1.5 | 3.5 |
| Imports | -1.6 | -5.1 |
| Intermediate (Stage 2) commodities | 1.7 | 3.4 |
| Domestic | 1.6 | 4.4 |
| Imports | 2.0 | -3.1 |
| Preliminary (Stage 1) commodities | 1.9 | 3.3 |
| Domestic | 1.6 | 4.3 |
| Imports | 4.1 | -2.5 |
|
Final Stage, Base: 1998-99 = 100.0
| Final Stage, Quarterly % change
|
JUNE KEY POINTS
FINAL (STAGE 3) COMMODITIES
- The final (Stage 3) index increased by 1.0% in the June quarter 2007.
- The domestic component rose 1.5%, mainly due to increases in building construction, petroleum refining and other agricultural products.
- The imports component fell by 1.6%, due to price decreases for electronic equipment, other manufacturing and tobacco products, which more than offset increases in petroleum refining.
INTERMEDIATE (STAGE 2) COMMODITIES
- The intermediate (Stage 2) index increased 1.7% in the June quarter 2007.
- The domestic component rose 1.6%, mainly due to increases in petroleum refining, basic non-ferrous metals and metal ore mining.
- The imports component increased 2.0%, due to oil and gas extraction, petroleum refining and basic chemical manufacturing. These increases were partly offset by decreases in industrial machinery, electronic equipment and electrical equipment.
PRELIMINARY (STAGE 1) COMMODITIES
- The preliminary (Stage 1) index increased 1.9% in the June quarter 2007.
- The domestic component rose 1.6%, mainly due to petroleum refining, basic non-ferrous metals and oil and gas extraction.
- The imports component increased 4.1%, due to oil and gas extraction, petroleum refining and basic chemical manufacturing. These increases were partly offset by decreases in industrial machinery and iron and steel manufacturing.
NOTES
FORTHCOMING ISSUES
| ISSUE (QUARTER) | Release Date |
| September 2007 | 22 October 2007 |
| December 2007 | 21 January 2008 |
CHANGES IN THIS ISSUE
There are no changes in this issue.
RELATED STATISTICS
For more information about statistics in this publication contact Lee Taylor on Canberra (02) 6252 6251, or email <lee.taylor@abs.gov.au>.
INQUIRIES
For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Lee Taylor on Canberra (02) 6252 6251.
SUMMARY COMMENTARY
STAGE OF PRODUCTION OVERVIEW
The final (stage 3) stage of production producer price index recorded a 1.0% increase in the June quarter 2007. The intermediate (Stage 2) index increased by 1.7% with an increase of 1.9% for the preliminary (Stage 1) index. Through the year to June quarter 2007, the final (Stage 3) index increased by 2.3%, the intermediate (Stage 2) increased by 3.4% and the preliminary (Stage 1) index increased by 3.3%.
The increase in the final (Stage 3) index reflects an increase of 1.5% in the price of domestically produced items, offset by a fall of 1.6% in the price of imported items. The domestic component increased due to price rises for building construction and petroleum refining. The imports component decreased due to price falls for electronic equipment, other manufacturing and tobacco products. These decreases were partly offset by an increase in petroleum refining.
The increase of 1.7% in the intermediate (Stage 2) index reflects an increase of 1.6% in the price of domestically produced items and an increase of 2.0% in the price of imported items. The domestic component increased due to price rises for petroleum refining, basic non-ferrous metals and metal ore mining. The imports component increased due to price increases for oil and gas extraction, petroleum refining and basic chemical manufacturing. These increases were partly offset by price decreases for industrial machinery, electrical equipment and electronic equipment.
The increase of 1.9% in the preliminary (Stage 1) index reflects an increase of 1.6% in the price of domestically produced items and an increase of 4.1% in the price of imported items. The domestic component increased due to price rises for petroleum refining, basic non-ferrous metals and oil and gas extraction. The imports component increased due to price rises for oil and gas extraction, petroleum refining and basic chemical manufacturing. These increases were partly offset by price falls for industrial machinery and iron and steel manufacturing.
COMPARISION OF SOP INDEXES: Base: 1998-99 = 100.0
MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES
During the June quarter 2007, the prices paid by manufacturers for material inputs increased by 2.7%, while the prices they received for their outputs also increased by 2.5%.
The input price index increased by 0.5% through the year to June quarter 2007 and the output price index for the same period increased by 1.5%.
Price rises in imported and domestic crude oil, whole milk, copper, lead ores and concentrates, barley unmilled and sheep and lambs were recorded for the materials used in manufacturing industries. Price decreases for cattle and calves, flat rolled products of iron and steel, pigs, iron ore mining and imported tobacco provided offsets to the price increases.
Higher prices received for refined petroleum products, non-ferrous basic metal products and non-ferrous metal rolling, drawing, extruding n.e.c. were significant contributors to the increase in the articles produced by manufacturing industries index for the June quarter 2007. These increases were partly offset by decreases in the prices received for alumina production and aluminium smelting combined with a decrease in meat processing.
ARTICLES PRODUCED BY MANUFACTURING INDUSTRIES, All Groups
: Quarterly % change
MATERIALS USED IN MANUFACTURING INDUSTRIES, All Groups
: Quarterly % change
CONSTRUCTION INDUSTRIES PRODUCER PRICE INDEXES
The price index for materials used in house building increased by 0.6% in the June quarter 2007 and by 3.3% through the year to June quarter 2007. The most significant increases were recorded for concrete, switches and lamps and aluminium windows. These increases were partly offset by decreases in the price of mains cable, conduit and accessories, boarding and lining and metal roof decking and guttering. All states recorded increases this quarter ranging from 0.3% in Adelaide to 1.7% in Hobart.
Materials Used in House Building, All groups
: Quarterly % change
The price index for the output of the general construction industry increased by 1.3% in the June quarter 2007, and by 4.2% through the year to June quarter 2007. Increases were registered in the quarter for all component industries. The largest contributor this quarter was the index for non-residential building construction, followed by house construction, residential building construction and road and bridge construction.
Demand for trades and services across regions is driving construction price movements this quarter. Materials and labour cost increases were less significant factors in price movements.
Victoria made the largest contribution to the quarterly movement of the price index of the general construction industry this quarter. This was largely due to an increase in non-residential building construction prices. After two consecutive quarters of price falls, New South Wales also made a large positive contribution, influenced by non-residential construction prices. Queensland and Western Australia also contributed significantly to the positive movement; greatest contributions to price movements were made by house construction and non-residential building construction respectively.
SERVICE INDUSTRIES PRODUCER PRICE INDEXES
The property and business services industries price index increased by 0.5% in the June quarter 2007 and by 6.0% through the year to June quarter 2007. The property services price index increased by 1.6% and by 8.8% through the year to June quarter 2007. The main contributors to the increase were for real estate agents and commercial property operators.
The business services index decreased by 0.2% in the June quarter 2007 and by 4.3% through the year to June quarter 2007. The main contributors to the decrease were computer consultancy services, contract staff services and commercial art and display services.
Property and Business Services Industries, All groups
: Quarterly % change
The transport (freight) and storage industries index increased by 0.4% in the June quarter 2007 and by 0.8% through the year to June quarter 2007 . The most significant contributors to the increase were road freight transport services, rail freight service, coastal water transport and customs agents. These increases were partly offset by decreases in international sea freight, scheduled international air freight and services to water transport.
Transport (freight) and storage industries, All groups
: Quarterly % change
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