Key Figures
Stage of Production Price Indexes |
|  |
| Dec Qtr 03 to Mar Qtr 04 | Mar Qtr 03 to Mar Qtr 04 | |
| STAGE OF PRODUCTION | % change | % change | |
| |
| Final (Stage 3) commodities (excl. exports) | 0.6 | 0.9 | |
| Domestic | 1.4 | 4.1 | |
| Imports | -3.7 | -13.6 | |
| Intermediate (Stage 2) commodities | -0.2 | -2.3 | |
| Domestic | 0.5 | 0.0 | |
| Imports | -4.8 | -15.7 | |
| Preliminary (Stage 1) commodities | -0.1 | -2.7 | |
| Domestic | 0.5 | -0.5 | |
| Imports | -4.4 | -15.8 | |
| |
Final Stage, Base: 1998–99 = 100.0
| Final Stage, Quarterly % change
|
Key Points
FINAL (STAGE 3) COMMODITIES
- The final (Stage 3) index rose 0.6% in the March quarter 2004.
- The final (Stage 3) domestic index rose 1.4%, mainly due to increases in prices of building construction, petroleum refining and a range of agricultural produce.
- The final (Stage 3) imports index fell -3.7%, due to exchange-rate driven price falls for a wide range of imported goods, in particular, manufactured goods.
INTERMEDIATE (STAGE 2) COMMODITIES
- The intermediate (Stage 2) index fell -0.2% in the March quarter 2004.
- The intermediate (Stage 2) domestic index rose 0.5%, mainly due to legal and accounting services, basic non-ferrous metal manufacturing and petroleum refining, which were partially offset by decreases for grain, sheep, beef and dairy cattle farming, and meat and meat products.
- The intermediate (Stage 2) imports index fell -4.8%, due to a price drop in a wide range of products caused by the appreciation of the Australian dollar against most major currencies.
PRELIMINARY (STAGE 1) COMMODITIES
- The preliminary (Stage 1) index fell -0.1% in the March quarter 2004.
- The preliminary (Stage 1) domestic index rose 0.5% mainly due to legal and accounting services, basic non-ferrous metal manufacturing and petroleum refining, which were partially offset by decreases for grain, sheep, beef and dairy cattle farming, and oil and gas extraction.
- The preliminary (Stage 1) imports index fell -4.4% mainly due to exchange-rate driven falls in imports including oil and gas extraction, motor vehicle and part manufacturing and electronic equipment manufacturing.
Notes
CHANGES IN THIS ISSUE
The ABS has adopted a new methodology for imputing missing prices in the Producer Price Indexes. Rather than carrying forward the previously observed price (so that no movement is imputed), from March quarter 2004 missing prices are imputed based on price movements of similar commodities. This change has been introduced to bring the PPI imputation methods into line with international recommendations.
RELATED STATISTICS
For more information about statistics in this publication and about other 'ABS data available on request', contact Steve Whennan on Canberra (02) 6252 6251, or email <steve.whennan@abs.gov.au>.
Inquiries
For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Steve Whennan on Canberra (02) 6252 6251.
Commentary
STAGE OF PRODUCTION OVERVIEW
The final (Stage 3) stage of production producer price index increased by 0.6% in the March quarter 2004, whereas the intermediate (Stage 2) and preliminary (Stage 1) indexes both fell, by -0.2% and -0.1% respectively. Through the year to March quarter 2004, the final (Stage 3) index increased by 0.9%, whereas the intermediate (Stage 2) and the preliminary (Stage 1) indexes fell, by -2.3% and -2.7% respectively.
The domestic final commodities index rose 1.4% as a result of increases for building construction, petroleum refining and a range of agricultural produce. However, these increases were partially offset by the -3.7% fall for imported commodities, which was driven significantly by falls for a range of manufactured goods.
The intermediate (Stage 2) stage of production producer price index decreased by -0.2% due to price falls for a range of imported manufactured products, and price falls for domestically produced grain, sheep, beef and dairy cattle farming, and meat and meat products. These falls were partially offset by price rises for legal and accounting services and domestically produced basic non-ferrous metal manufacturing and petroleum refining.
The preliminary (Stage 1) stage of production producer price index decreased by -0.1% due to price falls for oil and gas extraction, imports of motor vehicle and part manufacturing, and domestically produced grain, sheep, beef and dairy cattle farming and electronic equipment manufacturing. These falls were partially offset by price rises for legal and accounting services and domestically produced basic non-ferrous metal manufacturing and petroleum refining.
COMPARISON OF SOP INDEXES
MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES
During the March quarter 2004, the input prices for the manufacturing industries decreased by -2.2%. The output prices for manufacturing industries increased by 1.2% during the same period. Appreciation of the Australian dollar against the US dollar and other major currencies had a strong impact on the results for both the input and output indexes. The input and output price indexes decreased by -9.0% and -1.1%, respectively, through the year to March quarter 2004.
Decreases in the price of both imported and domestic crude oil, cattle and calves, iron ore, plastic materials and pigs were the main contributors to the quarterly result for the materials used in manufacturing industries index, with falls in prices for oats and motor vehicle parts also being significant contributors. Price increases for copper oxides, lead and zinc ores, and sheep and lambs provided some offsets to these falls.
Increasing prices for petroleum products, alumina and edible offal contributed to the bulk of the increase in the articles produced by manufacturing industries index for the March quarter 2004, which were partially offset by decreases in prices for prepared animal and bird feeds, pigmeat and beef for domestic consumption.
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 indexes for materials used in house building and materials used in building other than house building increased by 0.6% and 0.2%, respectively, in the March quarter 2004. For both indexes, price increases were observed for a wide range of materials. Softwood, cupboards and fittings, aluminium windows and doors, hardwood, concrete tiles and clay bricks were the most significant contributors to the increase observed for the materials used in house building price index. Few offsetting price decreases were recorded for this price index, with the largest being for plaster products and taps and valves.
Other pre-cast concrete products, non-ferrous pipes and fittings and aluminium windows were the largest contributors to the increase in the index of materials used in building other than house building.
All State capital city indexes recorded increases for the materials used in house building price index in the March quarter 2004, ranging from 0.5% in Sydney and Melbourne to 2.0% in Hobart. Most cities recorded increases in the March quarter 2004 for the materials used in building other than house building price index, ranging from 0.2% in Brisbane to 0.6% in Melbourne. Perth was unchanged and Sydney recorded a fall, of -0.1%, for the first time since September quarter 2000.
Through the year to March quarter 2004, the materials used in house building index rose 2.7%, compared with an increase of 2.3% for the index of materials used in building other than house building.
MATERIALS USED IN HOUSE BUILDING: All Groups, Quarterly % change
MATERIALS USED IN BUILDING OTHER THAN HOUSE BUILDING: All Groups Quarterly % Change
The price index for the output of the general construction industry increased by 2.4% in the March quarter 2004 and by 8.2% for the year ending March quarter 2004. Increases were registered across the quarter for all component industries, with the index for non-residential building construction (3.9%) and road and bridge construction (0.7%) being the largest contributors, followed by residential building construction other than houses (3.9%) and house construction (1.1%). Contributing to the movement in the building price indexes this quarter were increases in the cost of labour and of material inputs.
OUTPUT OF THE GENERAL CONSTRUCTION INDUSTRY: All Groups, Quarterly % change
SERVICE INDUSTRIES PRODUCER PRICE INDEXES
The property & business services industries price index increased by 1.4% in the March quarter, compared with a 0.5% increase in the December 2003 quarter. Annually the index increased 3.6% from March quarter 2003 to March quarter 2004. The price index for property services increased by 1.2% in March quarter 2004. Within property services all indexes showed increases for the third consecutive quarter. The price index of real estate agents contributed the largest percentage movement to the property services index with a 4.5% increase this quarter, and an annual movement of 13.8%.
PROPERTY AND BUSINESS SERVICES INDUSTRIES: All Groups, Quarterly % change
The business services index rose 1.4% in the March quarter 2004. The main contributor to the upwards movement was a large increase in accounting services (9.5%). Annually the accounting services index increased by 12.5%. Business management services and computer consultancy were both significant contributors to the overall division index, increasing by 2.4% and 0.9% respectively. A number of decreases were also recorded this quarter for advertising services (-3.3%), surveying services (-0.3%) and scientific research (-0.2%).
The transport (freight) and storage industries index increased by 1.1% in the March quarter 2004, compared with a 0.5% increase in the December quarter 2003. Annually the index rose 1.8% from March quarter 2003 to March quarter 2004. The most significant contributor to the increase was international sea freight (9.6%), and smaller increases were also observed for road freight (0.8%) and rail freight (2.4%). These increases were partially offset by a fall in pipeline transport (-7.8%).
TRANSPORT (FREIGHT) AND STORAGE INDUSTRIES: All Groups, Quarterly % change
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