SEPTEMBER QUARTER KEY FIGURES
 | Jun Qtr 04 to Sep Qtr 04 | Sep Qtr 03 to Sep Qtr 04 |
| STAGE OF PRODUCTION | % change | % change |
|
| Final (Stage 3) commodities (excl. exports) | 1.4 | 3.2 |
| Domestic | 1.4 | 4.5 |
| Imports | 1.2 | -3.4 |
| Intermediate (Stage 2) commodities | 2.3 | 3.2 |
| Domestic | 2.0 | 3.3 |
| Imports | 4.3 | 2.2 |
| Preliminary (Stage 1) commodities | 2.9 | 4.3 |
| Domestic | 2.4 | 4.1 |
| Imports | 5.5 | 6.1 |
|
Final Stage, Base: 1998-99 = 100.0
| Final Stage, Quarterly % change
|
SEPTEMBER QUARTER KEY POINTS
FINAL (STAGE 3) COMMODITIES
- The final (Stage 3) index rose 1.4% in the September quarter 2004, the highest quarterly increase since June quarter 2001.
- The final (Stage 3) domestic index rose 1.4%, mainly due to increases in building construction, electricity, gas and water supply and petroleum refining, which were partially offset by price falls in other agricultural products and motor vehicles and parts.
- The final (Stage 3) imports index rose 1.2%, due to exchange rate driven price increases for both consumer and capital goods, including industrial machinery and equipment, tobacco products, other manufacturing and refined petroleum products, which were partially offset by decreases in beverage and malt manufacturing.
INTERMEDIATE (STAGE 2) COMMODITIES
- The intermediate (Stage 2) index rose 2.3% in the September quarter 2004.
- The intermediate (Stage 2) domestic index rose 2.0%, mainly due to increases in iron and steel products, grain, sheep, beef and dairy farming, oil and gas extraction and refined petroleum products.
- The intermediate (Stage 2) imports index rose 4.3%, due to oil and gas extraction, refined petroleum products, motor vehicles and parts, and iron and steel products.
PRELIMINARY (STAGE 1) COMMODITIES
- The preliminary (Stage 1) index rose 2.9% in the September quarter 2004.
- The preliminary (Stage 1) domestic index rose 2.4% mainly due to iron and steel, oil and gas extraction, grain, sheep, beef and dairy farming, coal and refined petroleum products. These increases were partly offset by falls in electricity, gas and water supply.
- The preliminary (Stage 1) imports index rose 5.5% mainly due to exchange rate driven price increases for a range of imports including oil and gas extraction, basic chemicals, iron and steel products and refined petroleum products.
NOTES
CHANGES IN THIS ISSUE
As forshadowed in the previous issue of this publication, June quarter 2004 was the last quarter that the Price Index of Materials Used in Building Other than House Building has been compiled. This data appears in tables 19 and 20 of this publication and in the electronic tables 33 - 42 on the ABS web site. Users of this index who are interested in discussing alternative indicators of price change for these commodities can contact Steve Whennan on Canberra (02) 6252 6251, or email <steve.whennan@abs.gov.au>.
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
Each of the three stage of production indexes increased in the September quarter 2004, with the preliminary (Stage 1) index showing the largest rise of 2.9%, followed by an increase of 2.3% for the intermediate (Stage 2) index and a 1.4% increase for the final (Stage 3) index. Through the year to September quarter 2004, the preliminary (Stage 1) index increased by 4.3%, followed by an increase of 3.2% for both the intermediate (Stage 2) index and the final (Stage 3) index.
The depreciation of the Australian dollar against the US dollar has resulted in an increase in all three stage of production indexes. Further, the impact of the global rise in the price of crude oil can be seen across all three indexes, extending beyond oil and gas extraction and production of petroleum products to affect other commodities which, either directly or indirectly, utilise crude oil as a component in the production process. A similar impact can be observed from iron and steel, with increasing global demand exerting upward pressure on iron and steel prices as well as related industries.
The domestic final commodities index increased by 1.4% due to price increases for building construction, electricity, gas and water supply and petroleum refining, which were partially offset by decreases for other agriculture and motor vehicles and parts. The imports final commodities index rose 1.2% due to increases for industrial machinery and equipment, tobacco products, other manufacturing and petroleum refining. In addition, price rises were observed for a wide range of imported manufactured goods, driven by the depreciation of the Australian dollar against most major currencies. These increases were partially offset by price falls for imports of beverages and malts and fruit and vegetable processing.
The intermediate (Stage 2) stage of production producer price index increased by 2.3% due to price rises for imports of oil and gas, refined petroleum products, motor vehicles and parts, and iron and steel. Price rises were also observed for domestically produced iron and steel, grain, sheep and beef, oil and gas, and refined petroleum products.
The preliminary (Stage 1) stage of production producer price index increased by 2.9% due to price rises for imports of oil and gas, basic chemicals, iron and steel, and refined petroleum products. Domestically produced iron and steel, oil and gas, grain, sheep and beef, and petroleum products also contributed to the increase in this index.
COMPARISON OF SOP INDEXES
MANUFACTURING INDUSTRIES PRODUCER PRICE INDEXES
During the September quarter 2004, the input prices for the manufacturing industries increased by 7.9%. The output prices for manufacturing industries increased by 2.8% during the same period. For both the input and output price indexes, these represented the highest quarterly increases since December quarter 1990. The input price index increased by 8.1% through the year to September quarter 2004 and the output price index increased by 6.1% during the same period.
Increases in the price of crude oil (both imported and domestic), sheep and lambs, iron and steel, iron ore mining, and cattle and calves were the main contributors to the quarterly result for the materials used in manufacturing industries index. Price decreases for wheat and meslin, and electricity provided some offsets to these increases. Higher prices for petroleum products, exported beef, and basic iron and steel manufacturing contributed to the bulk of the increase in the articles produced by manufacturing industries index for the September quarter 2004. These increases were partially offset by decreases in prices for motor vehicles.
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 increased by 0.8% in the September quarter 2004, reflecting price increases for a range of materials. The most significant contributors to the increase were reinforcing steel, steel beams and sections, concrete tiles, clay bricks, and cupboards and fittings. Small offsetting price decreases were recorded for this index, with the most significant being ceramic tiles, and aluminium doors and windows.
Through the year to September quarter 2004, the materials used in house building index rose 3.2%
All state capital city indexes recorded increases for the materials used in house building price index in the September quarter 2004, ranging from 0.5% in Sydney to 2.1% in Hobart.
Materials Used in House Building: All Groups, Quarterly % change
The price index for the output of the general construction industry increased by 1.4% in the September 2004 quarter and by 7.5% through the year ending September 2004 quarter. Increases were registered in the quarter for all component industries, with the index for non-residential building construction being the largest contributor, followed by house construction, residential building construction other than houses, and road and bridge construction.
Contributing to the movement in the general construction industry price indexes this quarter were increases in the cost of labour and material inputs and subcontractor margins. Of the material inputs, an increase in the cost of steel products had a considerable impact, particularly on non-residential building construction.
OUTPUT OF THE GENERAL CONSTRUCTION INDUSTRY: All Groups, Quarterly % change
SERVICE INDUSTRIES PRODUCER PRICE INDEXES
The property and business services industries price index increased by 0.6% in the September quarter 2004 and by 2.8% for the year ending September 2004. The property services price index increased by 0.6% this quarter with increases for retail property operators, industrial property operators and office property operators. These increases were partially offset by a small decrease in Australian residential sales fees. For the year ending September quarter 2004, the property services price index rose 3.5%.
PROPERTY AND BUSINESS SERVICES INDUSTRIES: All Groups, Quarterly % change
The business services index rose 0.6% in the September quarter 2004 and by 2.5% for the year ending September 2004. The main contributors were legal services, advertising services and contract staff services. These increases were partially offset by a decrease in accounting services.
The transport (freight) and storage industries index increased by 1.7% in the September quarter 2004 and by 3.3% for the year ending September quarter 2004. The most significant contributors with price increases were express road freight, general road freight, international sea transport and pipeline transport. The most significant price decreases were observed for international air transport and customs agents services.
TRANSPORT (FREIGHT) AND STORAGE INDUSTRIES: All Groups, Quarterly % change
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