producer price indexes australia...! partly offset by falls in the prices received for grain, sheep,...

3.73.8Imports

1.10.5Domestic

1.40.9Preliminary (Stage 1) commodities

3.73.1Imports

1.20.4Domestic

1.40.7Intermediate (Stage 2) commodities

2.71.9Imports

0.90.3Domestic

1.10.5Final (Stage 3) commodities (excl. exports)

% change% change

Jun Qtr 11 toJun Qtr 12

Mar Qtr 12 toJun Qtr 12

S T A G E O F P R O D U C T I O N

K E Y F I G U R E S

F I N A L ( S T A G E 3 ) C O M M O D I T I E S

! rose 0.5% in the June quarter 2012.

! mainly due to rises in the prices received for other agriculture (+10.9%), petroleum

refining (+4.3%) and other manufacturing (+2.4%).

! partly offset by falls in the prices received for commercial fishing (–12.2%) and

accommodation (–5.6%).

! rose 1.1% through the year to the June quarter 2012.

I N T E R M E D I A T E ( S T A G E 2 ) C O M M O D I T I E S


! mainly due to rises in the prices received for electricity, gas and water supply (+4.9%),

oil and gas extraction (+2.6%) and petroleum refining (+2.4%).

! partly offset by falls in the prices received for commercial fishing (–17.5%) and basic

non–ferrous metal manufacturing (–2.5%).


P R E L I M I N A R Y ( S T A G E 1 ) C O M M O D I T I E S


! mainly due to rises in the prices received for electricity, gas and water supply (+4.2%),

oil and gas extraction (+2.6%) and basic chemical manufacturing (+4.4%).

! partly offset by falls in the prices received for grain, sheep, beef and dairy cattle farming

(–2.5%) and basic non–ferrous metal manufacturing (–2.5%).


K E Y P O I N T S

E M B A R G O : 1 1 . 3 0 A M ( C A N B E R R A T I M E ) M O N 2 3 J U L 2 0 1 2

PRODUCER PRICE INDEXES A U S T R A L I A

6427.0J U N E Q U A R T E R 2 0 1 2

For further informationabout these and relatedstatistics, contact theNational Information andReferral Service on1300 135 070.

Final StageBase 1998–99 = 100.0

Jun2008

Jun2009

Jun2010

Jun2011

Jun2012

index no.

125

130

135

140

145

Final StageQuarterly % change

Jun2008

Jun2009

Jun2010

Jun2011

Jun2012

%

–1

0

1

2

I N Q U I R I E S

w w w . a b s . g o v . a u

2 August 2013June 2013

3 May 2013March 2013

1 February 2013December 2012

2 November 2012September 2012

RELEASE DATEISSUE (Quarter)FO R T H C O M I N G I S S U E S

B r i a n P i n k

Au s t r a l i a n S t a t i s t i c i a n

Data referenced in the Key Points and Commentary are available from the tables shown

in this publication, or in the corresponding tables of this publication on the ABS website

<http://www.abs.gov.au>.

DA T A RE F E R E N C E S

Any discrepancies between totals and sums of components are due to rounding.RO U N D I N G

From the September quarter 2012 issue, the ABS will introduce a number of changes as a

result of the Review of the Producer and International Trade Price Indexes. Outcomes of

the Review were announced in the Information Paper: Outcome of the Review of the

Producer and International Trade Price Indexes, 2012 (cat. no. 6427.0.55.004). The

changes include:

! Introduction of ANZSIC 2006 classification for the SOP indexes (see above, and the

Appendix). Changes to publication table names and SOP and PPI titles (see Chapter

5 of the Information paper);

! Changes to release dates – the ABS will delay the release of this publication by nine

working days. The Forthcoming Issues have been updated to reflect this change;

! Re–referencing – all index numbers will be calculated on a new index reference

period of 2011–12. This will result in the index numbers for each index series being

reset to 100.0 for the financial year 2011–12. Period–to–period percentage changes

may differ slightly to those previously published due to rounding and the

re–referencing. These differences do not constitute a revision; and

! The publication of Group 697 – Veterinary services, within Division M – Professional,

scientific and technical services.

More information on the implementation of the outcomes of the Review, including

updated weighting patterns for the SOP and PPI series will be published in an

information paper to be released in October 2012.

CH A N G E S IN FU T U R E

RE L E A S E S

This issue includes an Appendix outlining the implementation of the Australian and New

Zealand Standard Industrial Classification, 2006 edition (ANZSIC 2006) for the Stage of

Production (SOP) indexes. The implementation of the ANZSIC 2006 for the SOP indexes

is one of a number of outcomes from a Review of the Producer and International Trade

Price Indexes, published by the ABS on 6 March 2012 (see below). The Appendix

contains correspondences between the old (ANZSIC 1993) and new (ANZSIC 2006) SOP

series currently released in Producer Price Indexes, Australia (cat. no. 6427.0), as well

as details of the SOP series that will be discontinued and expected new series.

CH A N G E S IN TH I S I S S U E

2 A B S • P R O D U C E R P R I C E I N D E X E S • 6 4 2 7 . 0 • J U N Q T R 2 0 1 2

N O T E S

On 1 July 2012, the Australian Government introduced a $23 per tonne carbon price on

greenhouse emissions, to be paid directly by Australia's largest greenhouse gas emitting

companies, together with compensation and incentive packages. Carbon pricing changes

the relative prices of high and low emission-intensive goods. The extent that any carbon

costs translate into general increases in prices depends on a range of factors. Carbon

pricing will be occurring at the same time as normal variations in prices are occurring

driven by productivity, the terms of trade or changing preferences. The extent to which

businesses pass on the carbon price will depend on their consideration of issues such as

operating costs, margins, and other economic factors (such as degree of competition).

The Australian Bureau of Statistics (ABS) will be releasing an Information Paper:

Recording emissions reduction schemes in ABS statistics (cat. no. 5257.0.55.001) on 30

July 2012. This information paper will summarise the nature of emissions permits

measures introduced under the Clean Energy Act 2011, and how the ABS expects to

include estimates of various carbon credit schemes in economic and environment

statistics, commencing with the September quarter 2012.

The ABS will not be able to quantify the impact of carbon pricing, compensation or other

government incentives and will not be producing estimates of price change exclusive of

the carbon price or measuring the impact of the carbon price. Any changes in the prices

charged by companies for their outputs, paid by companies for their inputs or paid by

consumers, will be reflected in the suite of price indexes compiled and published by the

ABS. Further information on the expected impacts of the introduction of carbon pricing

is available in the publication Strong Growth, Low Pollution - Modelling a Carbon Price

(The Treasury, 2011).

I N T R O D U C T I O N OF

CA R B O N PR I C I N G

A B S • P R O D U C E R P R I C E I N D E X E S • 6 4 2 7 . 0 • J U N Q T R 2 0 1 2 3

I N T R O D U C T I O N O F C A R B O N P R I C I N G

Jun2009

Jun2010

Jun2011

Jun2012

index no.

130

140

150

160

170Final (excl. exports)IntermediatePreliminary

COMPARISON OF SOP INDEXES: Base: 1998-99 = 100.0

In the June quarter 2012, the final (Stage 3) index rose 0.5%, the intermediate (Stage 2)

index rose 0.7% and the preliminary (Stage 1) index rose 0.9%. Through the year to the

June quarter 2012, the final (Stage 3) index rose 1.1%, the intermediate (Stage 2) index

rose 1.4% and the preliminary (Stage 1) index rose 1.4%.

The rise of 0.5% in the final (Stage 3) index reflected an increase of 0.3% in the prices of

domestically produced products and a rise of 1.9% in the prices of imported products.

The domestic component recorded rises in the prices received for other agriculture

(+10.9%), petroleum refining (+4.9%) and building construction (+0.1%). Partly

offsetting these rises were falls in the prices received for commercial fishing (–12.2%)

and accommodation (–5.6%). The imports component recorded rises in the prices for

industrial machinery and equipment manufacturing (+2.4%) and clothing manufacturing

(+3.8%). Partly offsetting these rises were falls in the prices for beverage and malt

manufacturing (–2.2%).

The rise of 0.7% in the intermediate (Stage 2) index reflected an increase of 0.4% in the

prices of domestically produced products and a rise of 3.1% in the prices of imported

products. The domestic component recorded rises in the prices received for electricity,

gas and water supply (+4.9%) and petroleum refining (+2.1%). Partly offsetting these

rises were falls in the prices received for commercial fishing (–17.5%). The imports

component recorded rises in the prices for oil and gas extraction (+6.5%), basic

chemical manufacturing (+6.2%) and petroleum refining (+3.6%). Partly offsetting these

rises were falls in the prices for iron and steel manufacturing (–2.2%).

The rise of 0.9% in the preliminary (Stage 1) index reflected an increase of 0.5% in the

prices of domestically produced products and a rise of 3.8% in the prices of imported

products. The domestic component recorded rises in the prices received for electricity,

gas and water supply (+4.2%), other mining (+6.4%) and petroleum refining (+2.1%).

Partly offsetting these rises were falls in the prices received for oil and gas extraction

(–2.6%) and grain, sheep, beef and dairy cattle farming (–2.5%). The imports component

recorded rises in the prices for oil and gas extraction (+6.5%), basic chemical

manufacturing (+6.2%) and petroleum refining (+3.6%). Partly offsetting these rises

were falls in the prices for paper and paper product manufacturing (–2.2%) and iron and

steel manufacturing (–1.9%).

ST A G E OF PR O D U C T I O N

(S O P ) OV E R V I E W


S T A G E O F P R O D U C T I O N C O M M E N T A R Y

Additional commentary for Producer Price Indexes is available in the entry for Producer

Price Indexes, Australia (cat. no. 6427.0) on the ABS website <http://www.abs.gov.au>.

The additional commentary includes:

! Manufacturing industries producer price indexes

! Materials used in manufacturing industries

! Articles produced by manufacturing industries

! Construction industries producer price indexes

! Materials used in house building

! Output of the construction industry

! Service industries producer price indexes

WH E R E TO F I N D

AD D I T I O N A L

CO M M E N T A R Y


S T A G E O F P R O D U C T I O N C O M M E N T A R Y continued

Materials used in coal mining, index numbers and percentage

changes

18

MI N I N G IN D U S T R I E S PR O D U C E R PR I C E IN D E X E S

Materials used in house building, percentage change by state capital

city

17

Materials used in house building, index numbers by state capital city16

Selected output of Division E – Construction, subdivision and class

index numbers

15

CO N S T R U C T I O N IN D U S T R I E S PR O D U C E R PR I C E IN D E X E S

Materials used in manufacturing industries, index numbers for

subdivisions

14

Materials used in manufacturing industries, division percentage

changes

13

Materials used in manufacturing industries, index numbers for

division and selected materials

12

Articles produced by manufacturing industries, index numbers for

subdivisions, groups and classes

11

Articles produced by manufacturing industries, division index

numbers and percentage changes

10

MA N U F A C T U R I N G IN D U S T R I E S PR O D U C E R PR I C E IN D E X E S

AD D I T I O N A L TA B L E S AV A I L A B L E ON AB S WE B S I T E

28Stage of Production and Implementation of ANZSIC 20061 . . . . . . . . . . . .AP P E N D I X

16

Contribution to change in preliminary commodities index by industry

and source

9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15

Contribution to change in intermediate commodities index by industry

and source

8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

Contribution to change in imported final commodities index by

industry and destination

7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

Contribution to change in domestic final commodities index by

industry and destination

6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

Contribution to change in final commodities index by industry and

source

5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11Percentage change, final commodities by source and destination4 . . . . . . .10Final commodities by source and destination3 . . . . . . . . . . . . . . . . . . . .9Percentage change by stage and source2 . . . . . . . . . . . . . . . . . . . . . . . .8Index numbers by stage and source1 . . . . . . . . . . . . . . . . . . . . . . . . . . .

pageTA B L E S OF ST A G E OF PR O D U C T I O N PR O D U C E R PR I C E IN D E X E S


L I S T O F T A B L E S

Index numbers, weighted average of six state capital cities31

PR I C E IN D E X E S FO R AS P H A L T SU P P L I E D AN D PL A C E D

Copper materials used in the manufacture of electrical equipment,

index numbers and percentage changes

30

PR I C E IN D E X E S OF CO P P E R MA T E R I A L S

Contribution to all groups index by state capital city29

PR I C E IN D E X OF MA T E R I A L S US E D IN HO U S E BU I L D I N G

Indexes of metallic materials used in the fabricated metal products

industry

28

Contribution of selected materials27

PR I C E IN D E X E S OF MA T E R I A L S US E D IN MA N U F A C T U R I N G IN D U S T R I E S

Contribution of subdivisions26

PR I C E IN D E X E S OF AR T I C L E S PR O D U C E D BY MA N U F A C T U R I N G

IN D U S T R I E S

Percentage change, final commodities by source and destination,

including exports

25

Index numbers, final commodities by source and destination,

including exports

24

ST A G E OF PR O D U C T I O N PR O D U C E R PR I C E IN D E X E S

Selected output of Division N – Administrative and support services,

group and class index numbers

23

Selected output of Division M – Professional, scientific and technical

services, group and class index numbers

22

Selected output of Division L – Rental, hiring and real estate services,

subdivision, group and class index numbers

21

Selected output of Division J – Information media and

telecommunications, Division O – Public administration and safety,

and Division S – Other services, group and class index numbers

20

Selected output of Division I – Transport, postal and warehousing,

group and class index numbers

19

SE R V I C E IN D U S T R I E S PR O D U C E R PR I C E IN D E X E S

AD D I T I O N A L TA B L E S AV A I L A B L E ON AB S WE B S I T E continued


L I S T O F T A B L E S continued

(c) Excluding exports.(a) Compiled on ANZSIC 1993 basis.(b) Reference base of each index: 1998–99 = 100.0.

141.479.3157.4152.2126.0156.8161.2155.1162.4June140.777.8157.0151.1122.2156.1159.8149.4161.6March

2012141.179.0157.1150.7123.9155.3159.6151.3161.2December140.777.2157.1150.2121.1155.2159.0148.0160.9September139.877.2156.0150.1121.5155.0158.9149.5160.6June138.778.3154.3147.0116.6152.2154.6139.4157.2March




2008127.478.5140.0135.9114.2139.6141.6136.6142.6December126.679.6138.7134.4113.5138.1139.5133.6140.6September

2007

141.078.3157.2151.1123.3155.9159.9151.0161.52011–12138.279.0153.4146.1117.7151.0153.7140.4156.02010–11134.482.0147.9140.6115.9144.9146.7134.6148.82009–10134.588.9146.3145.4130.9147.9153.7154.6153.82008–09

TotalImportsDomesticTotalImportsDomesticTotalImportsDomestic

FINAL(c)INTERMEDIATEPRELIMINARY

Per i od

STAGE OF PRODUCT ION (a) (b ) : Index numbers1


(b) Excluding exports.(a) Compiled on ANZSIC 1993 basis.

1.12.70.91.43.71.21.43.71.1June1.4–0.61.72.84.82.63.47.22.8March

20122.90.63.24.98.44.45.912.75.0December2.7–6.04.04.52.24.95.66.95.4September3.4–5.24.65.63.85.96.88.86.6June2.9–3.93.94.42.14.75.55.45.4March

20112.7–2.43.53.30.43.73.81.54.1December2.2–3.23.02.40.12.72.91.53.2September1.0–8.92.60.6–2.21.01.22.90.9June

–0.1–14.22.2–2.2–12.0–0.8–3.0–8.3–2.2March2010

–1.5–12.00.2–6.5–19.6–4.3–8.4–23.0–5.8December0.26.5–0.6–4.9–10.7–3.9–7.5–19.2–5.5September2.114.30.3–0.8–3.2–0.4–1.9–13.40.0June4.020.31.83.99.63.14.30.74.8March

20096.416.44.99.524.07.411.925.79.8December5.60.06.49.716.88.613.326.411.4September4.7–3.26.07.18.56.88.516.27.4June4.8–3.86.16.06.16.06.912.46.2March

20082.8–5.44.24.30.44.84.74.74.7December

2007

PE R C E N T A G E CH A N G E FR O M CO R R E S P O N D I N G QU A R T E R OF PR E V I O U S YE A R

0.51.90.30.73.10.40.93.80.5June–0.3–1.5–0.10.3–1.40.50.1–1.30.2March

20120.32.30.00.32.30.10.42.20.2December0.60.00.70.1–0.30.10.1–1.00.2September0.8–1.41.12.14.21.82.87.22.2June1.2–0.31.42.32.02.32.63.92.4March

20110.1–4.40.70.0–3.50.50.1–3.10.5December1.30.91.31.11.31.11.20.81.3September0.3–0.10.40.92.50.71.53.91.1June1.01.41.01.20.41.31.00.11.1March

2010–0.4–5.20.3–0.9–3.9–0.4–0.8–3.2–0.3December0.1–5.11.0–0.6–1.0–0.6–0.52.2–0.9September

–0.8–5.90.0–1.9–7.9–1.1–2.7–7.5–2.0June–0.43.9–1.0–3.2–8.3–2.3–4.6–16.0–2.7March

20091.314.8–0.50.96.80.00.31.70.0December2.01.81.93.77.43.15.59.54.8September1.0–1.01.42.74.32.43.57.62.8June1.90.62.02.03.71.82.34.92.0March

20080.6–1.40.91.10.61.11.52.21.4December

2007

PE R C E N T A G E CH A N G E FR O M PR E V I O U S QU A R T E R

2.0–0.92.53.44.83.24.07.53.52011–122.8–3.73.73.91.64.24.84.34.82010–11

–0.1–7.81.1–3.3–11.5–2.0–4.6–12.9–3.32009–104.512.83.35.511.54.76.78.96.42008–09

PE R C E N T A G E CH A N G E FR O M PR E V I O U S YE A R

TotalImportsDomesticTotalImportsDomesticTotalImportsDomestic

FINAL(b)INTERMEDIATEPRELIMINARY

Per i od

STAGE OF PRODUCT ION (a) : Percentage change2


(c) Excluding exports.(a) Compiled on ANZSIC 1993 basis.(b) Reference base of each index: 1998–99 = 100.0.

141.4140.7142.379.367.690.7157.4157.7157.5June140.7140.2141.577.866.388.9157.0157.3157.0March





2008127.4131.6122.578.569.487.2140.0146.0132.8December126.6130.6121.979.670.988.0138.7144.4131.7September

2007

141.0140.3142.078.366.889.5157.2157.3157.42011–12138.2139.0137.379.068.489.3153.4155.4151.42010–11134.4136.6131.882.071.991.7147.9151.7143.42009–10134.5138.5129.988.978.398.9146.3152.4138.82008–09

TotalCapitalConsumerTotalCapitalConsumerTotalCapitalConsumer

TOTAL(c)IMPORTSDOMESTIC(c)

Per i od

STAGE OF PRODUCT ION (a) (b ) : Fina l commod i t i es index numbers3


(b) Excluding exports.(a) Compiled on ANZSIC 1993 basis.

1.10.61.72.72.92.70.90.41.5June1.40.92.1–0.6–1.80.21.71.22.4March

20122.91.25.00.6–1.92.43.21.65.4December2.70.95.1–6.0–7.8–4.44.01.86.9September3.41.95.3–5.2–7.2–3.54.62.87.1June2.91.44.8–3.9–5.7–2.43.92.26.2March

20112.72.13.7–2.4–2.7–2.13.52.54.8December2.21.62.9–3.2–4.0–2.53.02.34.0September1.0–0.22.5–8.9–10.7–7.52.61.14.7June

–0.1–1.41.5–14.2–15.6–13.22.20.44.9March2010

–1.5–2.70.0–12.0–12.1–11.90.2–1.62.7December0.2–0.91.86.58.45.0–0.6–2.01.1September2.11.72.514.317.012.30.30.10.7June4.04.04.220.322.918.31.82.01.3March

20096.46.26.516.415.717.04.95.14.4December5.65.45.90.0–3.12.46.46.46.7September4.74.74.8–3.2–6.0–1.26.06.06.1June4.84.25.5–3.8–5.6–2.46.15.57.2March

20082.83.32.3–5.4–6.3–4.74.24.43.9December

2007

PE R C E N T A G E CH A N G E FR O M CO R R E S P O N D I N G QU A R T E R OF PR E V I O U S YE A R

0.50.40.61.92.02.00.30.30.3June–0.3–0.1–0.4–1.5–1.6–1.3–0.1–0.1–0.1March

20120.30.5–0.12.32.32.30.00.4–0.5December0.6–0.11.60.00.3–0.20.7–0.21.9September0.80.70.9–1.4–2.7–0.51.11.11.2June1.20.12.4–0.3–1.70.81.40.32.7March

20110.10.10.1–4.4–3.9–4.60.70.50.9December1.30.91.80.91.00.81.30.92.1September0.30.20.4–0.1–1.10.70.40.50.3June1.00.81.41.41.41.11.00.71.4March

2010–0.4–0.3–0.7–5.2–5.2–5.00.30.30.2December0.1–0.91.5–5.1–6.1–4.31.0–0.32.7September

–0.8–0.9–0.7–5.9–6.5–5.50.0–0.30.4June–0.4–0.6–0.13.95.62.6–1.0–1.3–0.7March

20091.31.51.114.816.913.2–0.5–0.1–1.3December2.01.72.21.81.32.31.91.82.3September1.01.30.9–1.0–1.7–0.51.41.51.1June1.91.52.20.6–0.61.52.01.82.3March

20080.60.80.5–1.4–2.1–0.90.91.10.8December

2007

PE R C E N T A G E CH A N G E FR O M PR E V I O U S QU A R T E R

2.00.93.4–0.9–2.30.22.51.24.02011–122.81.84.2–3.7–4.9–2.63.72.45.62010–11

–0.1–1.41.5–7.8–8.2–7.31.1–0.53.32009–104.54.34.812.813.012.43.33.33.22008–09

PE R C E N T A G E CH A N G E FR O M PR E V I O U S YE A R

TotalCapitalConsumerTotalCapitalConsumerTotalCapitalConsumer

TOTAL(b)IMPORTSDOMESTIC(b)

Per i od

STAGE OF PRODUCT ION (a) : Fina l commod i t i es percen tage change4


(b) Excluding exports.. . not applicable(a) Reference base of each index: 1998–99 = 100.0.

0.7141.4140.71.579.377.80.4157.4157.0Total

0.000.660.66. .. .. .0.000.830.83Legal and accounting services7840.003.113.11. .. .. .0.003.923.92Computer services7830.001.121.12. .. .. .0.001.411.41Technical services782

–0.023.213.23. .. .. .–0.024.054.07Real estate agents7720.001.891.89. .. .. .0.012.392.38Services to transport660.010.310.30. .. .. .0.020.390.37Water, air and space transport630–6400.020.500.48. .. .. .0.020.630.61Rail transport6200.001.671.67. .. .. .0.002.102.10Road freight transport611

–0.081.381.46. .. .. .–0.101.741.84Accommodation5710.075.355.28. .. .. .0.096.756.66Non-building construction4120.0948.7948.70. .. .. .0.1261.5161.39Building construction411

–0.0410.2810.32. .. .. .–0.0412.9613.00Electricity, gas and water supply36–370.103.973.870.134.634.500.083.783.70Other mfg290.054.144.090.2812.0211.74–0.012.062.07Industrial machinery and equipment mfg2860.022.001.980.093.453.360.001.611.61Electrical equipment and appliance mfg2850.021.121.100.124.113.99–0.010.330.34Electronic equipment mfg2840.020.810.790.103.293.190.000.160.16Photographic and scientific equipment mfg2830.031.351.320.144.013.870.000.650.65Other transport equipment mfg2820.008.168.160.1117.0016.89–0.035.825.85Motor vehicle and part mfg2810.010.390.380.020.960.940.000.230.23Fabricated metal product mfg2760.000.250.25. .. .. .0.000.310.31Sheet metal product mfg2750.000.040.040.000.180.18. .. .. .Non-ferrous basic metal product mfg2730.000.030.030.000.140.14. .. .. .Iron and steel mfg2710.011.051.040.020.770.750.011.121.11Plastic product mfg2560.010.270.260.020.780.760.000.130.13Rubber product mfg255

–0.042.642.680.114.174.06–0.082.232.31Other chemical product mfg254–0.010.110.12–0.040.530.57. .. .. .Basic chemical mfg2530.184.364.180.032.632.600.224.804.58Petroleum refining2510.000.280.28–0.020.730.750.000.160.16Recorded media mfg and publishing2430.031.371.340.070.780.710.021.531.51Publishing2420.000.320.320.000.070.070.000.380.38Printing and services to printing2410.000.640.64. .. .. .0.000.810.81Other wood, paper and paper product mfg232–2330.010.150.140.030.720.69. .. .. .Leather and leather product mfg2260.010.500.490.051.161.110.010.330.32Footwear mfg2250.032.502.470.153.903.750.002.132.13Clothing mfg224

–0.010.380.390.010.530.520.000.350.35Knitting mills2230.010.630.62–0.020.680.700.020.620.60Textile product mfg2220.000.400.400.010.690.680.000.330.33Textile fibre, yarn and woven fabric mfg2210.022.042.020.082.372.290.001.951.95Tobacco product mfg2190.034.964.93–0.052.042.090.065.725.66Beverage and malt mfg218

–0.034.124.150.073.553.48–0.064.264.32Other food mfg217–0.021.891.91. .. .. .–0.032.382.41Bakery product mfg2160.020.840.82. .. .. .0.021.061.04Flour mill and cereal food mfg2150.000.100.10–0.020.460.48. .. .. .Oil and fat mfg2140.022.222.200.041.621.580.022.372.35Fruit and vegetable processing2130.003.373.37–0.021.331.350.003.903.90Dairy product mfg212

–0.012.722.73. .. .. .–0.033.423.45Meat and meat product mfg211–0.100.760.86. .. .. .–0.140.951.09Commercial fishing040.202.071.87. .. .. .0.252.612.36Other agriculture011, 014–0160.000.180.18. .. .. .–0.010.220.23Grain, sheep, beef and dairy cattle farming012–013

Change

Jun Qtr

2012

Mar Qtr

2012Change

Jun Qtr

2012

Mar Qtr

2012Change

Jun Qtr

2012

Mar Qtr

2012

TOTAL(b)IMPORTSDOMESTIC(b)

ANZS IC 1993

STAGE OF PRODUCT ION, FINAL COMMODIT IES INDEX POINTS CHANGE (a) : Fina l

commod i t i es index poin t s change5


(b) Excluding exports.. . not applicable(a) Reference base of each index: 1998–99 = 100.0.

0.4157.4157.00.4157.7157.30.5157.5157.0Total

0.000.830.830.001.471.47. .. .. .Legal and accounting services7840.003.923.920.006.996.99. .. .. .Computer services7830.001.411.41–0.012.512.52. .. .. .Technical services782

–0.024.054.07–0.037.227.25. .. .. .Real estate agents7720.012.392.38. .. .. .0.005.455.45Services to transport660.020.390.37. .. .. .0.040.890.85Water, air and space transport630–6400.020.630.61. .. .. .0.041.431.39Rail transport6200.002.102.10. .. .. .0.004.814.81Road freight transport611

–0.101.741.84. .. .. .–0.243.984.22Accommodation5710.096.756.660.1612.0211.86. .. .. .Non-building construction4120.1261.5161.390.20109.57109.37. .. .. .Building construction411

–0.0412.9613.00. .. .. .–0.1029.6329.73Electricity, gas and water supply36–370.083.783.700.104.734.630.072.582.51Other mfg29

–0.012.062.07–0.013.673.68. .. .. .Industrial machinery and equipment mfg2860.001.611.610.001.101.100.002.272.27Electrical equipment and appliance mfg285

–0.010.330.34–0.010.480.49–0.010.140.15Electronic equipment mfg2840.000.160.160.000.280.28. .. .. .Photographic and scientific equipment mfg2830.000.650.650.000.810.810.000.450.45Other transport equipment mfg282

–0.035.825.85–0.035.895.92–0.045.755.79Motor vehicle and part mfg2810.000.230.23–0.010.410.42. .. .. .Fabricated metal product mfg2760.000.310.310.000.560.56. .. .. .Sheet metal product mfg2750.011.121.11. .. .. .0.022.562.54Plastic product mfg2560.000.130.13. .. .. .0.010.300.29Rubber product mfg255

–0.082.232.31. .. .. .–0.185.095.27Other chemical product mfg2540.224.804.58. .. .. .0.5010.9810.48Petroleum refining2510.000.160.16. .. .. .0.000.360.36Recorded media mfg and publishing2430.021.531.51. .. .. .0.043.493.45Publishing2420.000.380.38. .. .. .0.000.880.88Printing and services to printing2410.000.810.81. .. .. .0.001.851.85Other wood, paper and paper product mfg232–2330.010.330.32. .. .. .0.010.750.74Footwear mfg2250.002.132.13. .. .. .0.004.874.87Clothing mfg2240.000.350.35. .. .. .–0.010.790.80Knitting mills2230.020.620.60. .. .. .0.031.411.38Textile product mfg2220.000.330.33. .. .. .0.000.750.75Textile fibre, yarn and woven fabric mfg2210.001.951.95. .. .. .0.004.454.45Tobacco product mfg2190.065.725.66. .. .. .0.1313.0812.95Beverage and malt mfg218

–0.064.264.32. .. .. .–0.139.749.87Other food mfg217–0.032.382.41. .. .. .–0.065.455.51Bakery product mfg2160.021.061.04. .. .. .0.062.432.37Flour mill and cereal food mfg2150.022.372.35. .. .. .0.035.415.38Fruit and vegetable processing2130.003.903.90. .. .. .0.018.928.91Dairy product mfg212

–0.033.423.45. .. .. .–0.057.837.88Meat and meat product mfg211–0.140.951.09. .. .. .–0.302.182.48Commercial fishing040.252.612.36. .. .. .0.595.985.39Other agriculture011, 014–016

–0.010.220.23. .. .. .0.000.510.51Grain, sheep, beef and dairy cattle farming012–013

Change

Jun Qtr

2012

Mar Qtr

2012Change

Jun Qtr

2012

Mar Qtr

2012Change

Jun Qtr

2012

Mar Qtr

2012

TOTALCAPITALCONSUMER

ANZS IC 1993

STAGE OF PRODUCT ION (a) (b ) : Domest i c f ina l commod i t i es index po in t s change6


(a) Reference base of each index: 1998–99 = 100.0.. . not applicable

1.579.377.81.367.666.31.890.788.9Total

0.134.634.500.061.961.900.197.257.06Other mfg290.2812.0211.740.5524.1323.58. .. .. .Industrial machinery and equipment mfg2860.093.453.360.063.143.080.103.733.63Electrical equipment and appliance mfg2850.124.113.990.216.566.350.031.681.65Electronic equipment mfg2840.103.293.190.134.184.050.072.402.33Photographic and scientific equipment mfg2830.144.013.870.225.775.550.072.272.20Other transport equipment mfg2820.1117.0016.890.0321.8021.770.1712.1812.01Motor vehicle and part mfg2810.020.960.94. .. .. .0.051.921.87Fabricated metal product mfg2760.000.180.18. .. .. .–0.010.350.36Non-ferrous basic metal product mfg2730.000.140.14. .. .. .–0.010.270.28Iron and steel mfg2710.020.770.75. .. .. .0.031.531.50Plastic product mfg2560.020.780.76. .. .. .0.051.551.50Rubber product mfg2550.114.174.06. .. .. .0.238.298.06Other chemical product mfg254

–0.040.530.57. .. .. .–0.081.051.13Basic chemical mfg2530.032.632.60. .. .. .0.055.225.17Petroleum refining251

–0.020.730.75. .. .. .–0.031.451.48Recorded media mfg and publishing2430.070.780.71. .. .. .0.141.561.42Publishing2420.000.070.07. .. .. .0.020.150.13Printing and services to printing2410.030.720.69. .. .. .0.061.431.37Leather and leather product mfg2260.051.161.11. .. .. .0.112.312.20Footwear mfg2250.153.903.75. .. .. .0.297.747.45Clothing mfg2240.010.530.52. .. .. .0.021.041.02Knitting mills223

–0.020.680.70. .. .. .–0.041.351.39Textile product mfg2220.010.690.68. .. .. .0.011.371.36Textile fibre, yarn and woven fabric mfg2210.082.372.29. .. .. .0.164.704.54Tobacco product mfg219

–0.052.042.09. .. .. .–0.094.054.14Beverage and malt mfg2180.073.553.48. .. .. .0.137.056.92Other food mfg217

–0.020.460.48. .. .. .–0.020.920.94Oil and fat mfg2140.041.621.58. .. .. .0.093.223.13Fruit and vegetable processing213

–0.021.331.35. .. .. .–0.032.642.67Dairy product mfg212

Change

Jun Qtr

2012

Mar Qtr

2012Change

Jun Qtr

2012

Mar Qtr

2012Change

Jun Qtr

2012

Mar Qtr

2012

TOTALCAPITALCONSUMER

ANZS IC 1993

STAGE OF PRODUCT ION (a) : Impor ted f ina l commod i t i es index poin ts change7


(a) Reference base of each index: 1998-99 = 100.0.. . not applicable

1.1152.2151.13.8126.0122.20.7156.8156.1Total

0.047.637.59. .. .. .0.058.938.88Other business services7860.066.236.17. .. .. .0.067.297.23Marketing and business management services785

–0.036.156.18. .. .. .–0.047.207.24Legal and accounting services7840.003.343.34. .. .. .0.013.913.90Computer services7830.002.682.68. .. .. .–0.013.133.14Technical services7820.011.461.45. .. .. .0.011.711.70Machinery and equipment hiring and leasing774

–0.011.821.83. .. .. .–0.012.132.14Real estate agents7720.0611.6711.61. .. .. .0.0913.6713.58Property operators and developers7710.001.171.17. .. .. .–0.011.361.37Storage6700.001.941.94. .. .. .0.002.272.27Services to transport660.000.290.29. .. .. .0.000.340.34Other transport6500.011.331.32. .. .. .0.011.561.55Air and space transport6400.030.610.58. .. .. .0.040.720.68Water transport6300.020.820.80. .. .. .0.030.960.93Rail transport6200.017.767.75. .. .. .0.019.089.07Road freight transport611

–0.020.590.61. .. .. .–0.020.690.71Accommodation5710.347.306.96. .. .. .0.408.558.15Electricity, gas and water supply36–370.010.290.280.042.001.96. .. .. .Other mfg290.032.882.850.299.619.32–0.011.741.75Industrial machinery and equipment mfg2860.042.762.720.236.526.290.012.122.11Electrical equipment and appliance mfg2850.011.161.150.063.002.940.000.850.85Electronic equipment mfg2840.020.700.680.103.643.540.010.200.19Photographic and scientific equipment mfg2830.010.920.910.061.561.500.000.810.81Other transport equipment mfg282

–0.013.223.23–0.089.009.080.012.242.23Motor vehicle and part mfg2810.011.951.940.094.144.050.001.581.58Fabricated metal product mfg2760.011.241.230.010.150.140.001.421.42Sheet metal product mfg275

–0.033.123.150.000.060.06–0.043.643.68Structural metal product mfg274–0.010.570.58–0.031.641.67–0.010.380.39Non-ferrous basic metal product mfg273–0.062.212.27–0.021.191.21–0.072.382.45Basic non-ferrous metal mfg2720.004.094.09–0.104.434.530.024.044.02Iron and steel mfg2710.055.145.090.052.692.640.055.565.51Non-metallic mineral product mfg260.042.502.460.113.163.050.012.382.37Plastic product mfg2560.030.990.960.113.072.960.010.630.62Rubber product mfg2550.022.552.530.144.204.060.002.272.27Other chemical product mfg2540.122.852.730.559.518.960.041.711.67Basic chemical mfg2530.146.166.020.329.228.900.115.645.53Petroleum refining2510.022.902.88. .. .. .0.023.393.37Publishing2420.012.012.00. .. .. .0.002.352.35Printing and services to printing241

–0.011.651.66–0.072.712.780.001.471.47Paper and paper product mfg2330.022.372.350.070.920.850.022.622.60Other wood product mfg232

–0.011.131.140.001.871.87–0.021.001.02Log sawmilling and timber dressing2310.032.612.580.147.877.730.001.711.71Textile, clothing, footwear and leather mfg220.000.960.960.000.640.640.011.021.01Beverage and malt mfg2180.011.161.150.010.740.730.001.231.23Other food mfg2170.000.200.20. .. .. .–0.010.230.24Bakery product mfg2160.000.850.85. .. .. .0.001.001.00Flour mill and cereal food mfg2150.010.370.36–0.010.690.700.010.320.31Fruit and vegetable processing; oil and fat mfg213–214

–0.011.341.35–0.011.021.03–0.011.401.41Dairy product mfg212–0.021.801.82. .. .. .–0.032.102.13Meat and meat product mfg2110.091.451.360.050.720.670.091.571.48Other mining140.013.323.31–0.013.483.490.013.293.28Metal ore mining1310.176.476.301.6126.5224.91–0.083.063.14Oil and gas extraction120

–0.012.192.20. .. .. .–0.012.562.57Coal mining110–0.070.330.40. .. .. .–0.080.390.47Commercial fishing04–0.010.150.16. .. .. .–0.010.170.18Services to agriculture; hunting and trapping020.033.663.63. .. .. .0.034.284.25Other agriculture011, 014–016

–0.057.277.32. .. .. .–0.058.518.56Grain, sheep, beef and dairy cattle farming012–013

Change

Jun Qtr

2012

Mar Qtr

2012Change

Jun Qtr

2012

Mar Qtr

2012Change

Jun Qtr

2012

Mar Qtr

2012

TOTALIMPORTSDOMESTIC

ANZS IC 1993

STAGE OF PRODUCT ION PRICE INDEXES (a) : Inte rmed ia te commod i t i es index po in ts

change8


(a) Reference base of each index: 1998-99 = 100.0.. . not applicable

1.4161.2159.85.7155.1149.40.8162.4161.6Total

0.037.407.37. .. .. .0.048.608.56Other business services7860.055.855.80. .. .. .0.066.806.74Marketing and business management services785

–0.035.745.77. .. .. .–0.036.676.70Legal and accounting services7840.003.583.58. .. .. .0.004.164.16Computer services7830.002.872.87. .. .. .–0.013.333.34Technical services7820.022.062.04. .. .. .0.032.402.37Machinery and equipment hiring and leasing774

–0.012.572.58. .. .. .–0.012.982.99Real estate agents7720.0916.4716.38. .. .. .0.1119.1319.02Property operators and developers7710.001.431.43. .. .. .0.001.661.66Storage6700.002.322.32. .. .. .0.002.702.70Services to transport660.000.390.39. .. .. .0.000.460.46Other transport6500.011.491.48. .. .. .0.011.731.72Air and space transport6400.040.690.65. .. .. .0.050.800.75Water transport6300.031.131.10. .. .. .0.031.311.28Rail transport6200.019.569.55. .. .. .0.0111.1011.09Road freight transport611

–0.020.700.72. .. .. .–0.020.810.83Accommodation5710.389.208.82. .. .. .0.4310.6810.25Electricity, gas and water supply36–370.032.602.570.289.369.08–0.011.521.53Industrial machinery and equipment mfg2860.031.751.720.174.574.400.011.301.29Electrical equipment and appliance mfg2850.010.940.930.062.582.520.000.680.68Electronic equipment mfg2840.000.350.350.052.072.020.000.080.08Photographic and scientific equipment mfg2830.020.810.790.061.531.470.020.700.68Other transport equipment mfg282

–0.012.162.17–0.066.086.140.011.541.53Motor vehicle and part mfg2810.001.461.460.063.193.130.001.191.19Fabricated metal product mfg2760.000.620.620.000.070.070.000.710.71Sheet metal product mfg275

–0.022.162.18. .. .. .–0.022.512.53Structural metal product mfg274–0.010.690.70–0.042.042.08–0.010.470.48Non-ferrous basic metal product mfg273–0.082.732.81–0.031.521.55–0.082.933.01Basic non-ferrous metal mfg2720.006.396.39–0.147.037.170.026.296.27Iron and steel mfg2710.022.182.16. .. .. .0.022.532.51Non-metallic mineral product mfg260.032.232.200.113.002.890.022.112.09Plastic product mfg2560.020.810.790.102.692.590.010.520.51Rubber product mfg2550.042.852.810.195.355.160.012.452.44Other chemical product mfg2540.255.855.601.1719.9418.770.103.603.50Basic chemical mfg2530.166.736.570.3510.179.820.126.186.06Petroleum refining2510.022.462.44. .. .. .0.022.852.83Publishing2420.001.631.63. .. .. .0.001.891.89Printing and services to printing241

–0.022.722.74–0.176.957.120.002.042.04Paper and paper product mfg2330.010.930.920.030.270.240.011.041.03Other wood product mfg232

–0.021.121.140.001.631.63–0.021.041.06Log sawmilling and timber dressing2310.021.601.580.115.395.280.011.000.99Textile, clothing, footwear and leather mfg220.000.510.51–0.010.400.410.000.530.53Beverage and malt mfg2180.001.151.150.010.530.520.011.261.25Other food mfg2170.000.070.07. .. .. .0.000.080.08Bakery product mfg2160.000.440.44. .. .. .0.000.510.51Flour mill and cereal food mfg2150.010.160.15–0.010.360.370.010.130.12Fruit and vegetable processing; oil and fat mfg213–2140.000.530.53–0.010.450.460.000.540.54Dairy product mfg212

–0.010.690.70. .. .. .0.000.810.81Meat and meat product mfg2110.132.051.920.061.030.970.132.212.08Other mining140.043.113.07–0.012.712.720.053.183.13Metal ore mining1310.3112.5212.213.3054.1550.85–0.165.876.03Oil and gas extraction120

–0.034.234.26. .. .. .–0.024.924.94Coal mining1100.010.400.39. .. .. .0.020.470.45Forestry and logging030

–0.010.270.28. .. .. .–0.010.310.32Services to agriculture; hunting and trapping020.002.522.52. .. .. .0.012.932.92Other agriculture011, 014–016

–0.135.335.46. .. .. .–0.156.196.34Grain, sheep, beef and dairy cattle farming012–013

Change

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2012

Mar Qtr

2012Change

Jun Qtr

2012

Mar Qtr

2012Change

Jun Qtr

2012

Mar Qtr

2012

TOTALIMPORTSDOMESTIC

ANZS IC 1993

STAGE OF PRODUCT ION PRICE INDEXES (a) : Pre l im ina r y commod i t i es index poin t s

change9


5 The valuation basis for the transactions covered by an output index is basic prices,

defined as the amount received by the producer exclusive of any taxes on products and

transport and trade margins (i.e. the pricing point is ex–factory, ex–farm, ex–service

provider, etc.).

6 On the other hand, an input index has a valuation basis of purchasers' prices, defined

as the amount paid by the purchaser inclusive of any non–deductible taxes on products

and transport and trade margins (i.e. the prices recorded in the index should be those

relating to products delivered into store, delivered on site, etc.).

7 In reality, industry practice may mean that it is sometimes necessary to diverge from

the conceptual ideal in order to obtain actual transaction prices. For example, although

the pricing point for the output index Price Indexes of Articles Produced by

Manufacturing Industries is ex–factory, in cases where costs such as handling and

distribution are built into the manufacturer's selling price, they will be included in the

index.

8 Similarly, for input indexes such as the Price Index of Materials Used In House

Building, which has a pricing point of delivered on site, it has sometimes been necessary

to use the nearest actual transaction price available, e.g. prices of materials supplied and

fixed.

9 The GST is excluded from all the prices recorded in the current producer price

indexes because, in the main, it is deductible on business–to–business transactions. In

the case of service industry output indexes relating to business–to–household

transactions, the GST is also excluded because the pricing basis is basic prices (i.e.

exclusive of product taxes).

Valuat ion basis

4 Producer price indexes can be constructed as either output or input measures. The

output producer price indexes relate to selected products that are primary to a particular

industry, irrespective of the industrial classification of establishments undertaking the

activity. The input producer price indexes relate to selected products used by

establishments classified to particular industries.

Output and input indexes

3 Producer price indexes relate to products that are primary to a particular industry,

irrespective of the industrial classification of establishments undertaking the activity. The

indexes do not represent the activity of establishments classified to a particular industry.

For ease of use, some of the tables relating to producer price indexes carry the title

'Selected output of an ANZSIC Division or Subdivision'. This indicates selected output of

products primary to that ANZSIC Division or Subdivision. The labels for the tables

available on the ABS website <http://www.abs.gov.au> associated with these additional

publications have been shortened. The coverage of these tables is as described in these

explanatory notes.

GE N E R A L

Industry versus product

1 This publication and associated data cubes and time series spreadsheets available on

the ABS website <http://www.abs.gov.au>, contain a range of producer price indexes.

Economy–wide indexes are presented within a stage of production framework in this

publication. A set of other indexes relating to products or services that are primary to

specific industries (selected manufacturing, construction, mining and service industries)

are available on the ABS website <http://www.abs.gov.au>.

2 Index numbers for the stage of production producer price indexes, services and

construction indexes, are primarily calculated on the reference base 1998–99 =100.0.

The index numbers for other producer price indexes are primarily calculated on the

reference base 1989–90 = 100.0. New manufacturing and services indexes, introduced as

part of the ANZSIC 2006 implementation in the September quarter 2009, are calculated

on the reference base 2001–02 = 100.0. (Further information relating to the reference

bases is presented in the Appendix to the March quarter 2009 issue of this publication).

I N T R O D U C T I O N


E X P L A N A T O R Y N O T E S

18 As far as possible, the industry indexes have been constructed in accordance with

the Australian and New Zealand Standard Industrial Classification ANZSIC 2006 (cat.

no. 1292.0). Prior to the September quarter 2009, all of the series were based on the

ANZSIC 1993 classification. The stage of production series (tables 5–9 and 24–25) remain

on an ANZSIC 1993 basis. However, from the September quarter 2009 onwards, the

Classi f icat ions

12 The main sources of ongoing price data are samples of businesses. The samples can

relate to either buyers or sellers, or a combination of both. The choice is influenced by

the pricing point of the index (output or input) and practical considerations such as the

relative degree of concentration of buyers, and of sellers, and the implications for sample

sizes and costs.

13 The main pricing methodology used is specification pricing, under which a

manageable sample of precisely specified products is selected, in consultation with each

reporting business, for repeat pricing. In specifying the products, care is taken to ensure

that they are fully defined in terms of all the characteristics which influence their

transaction prices. As such, all the relevant technical characteristics need to be described

(e.g. make, model, features) along with the unit of sale, type of packaging, conditions of

sale (e.g. delivered, payment within 30 days), etc.

14 When the quality or the specifications of an item being priced change over time,

adjustments are made to the reported prices so that the index captures only pure price

change. That is, any element of price change attributable to a change in quality is

removed. If there is an increase (decrease) in the quality of an item, the price is adjusted

downwards (upwards) to reflect the value of the quality change to the provider of the

goods or services. This technique is known as pricing to constant quality.

15 Another very important consideration in establishing and maintaining price

collections is to ensure that the prices reported are actual market transaction prices.

That is, they must reflect the net prices received (or paid) after taking into account all

discounts applied to the transactions whether they be volume discounts, settlement

discounts or competitive price cutting discounts which are likely to fluctuate with market

conditions.

16 Any rebates also need to be considered. The collection of nominal list prices, or

book prices, is unlikely to yield reliable price indexes and could result in quite

misleading results if fluctuations in transaction prices are not captured. The ABS

therefore asks respondent businesses to report details of the discounts they offer so that

actual transaction prices can be calculated. In addition, as many different types of

discounts apply to business–to–business transactions (see paragraph 15), considerable

effort is put into monitoring discount practices in order to identify changes to existing

discounts and the introduction of new ones.

17 Specification pricing is not feasible in cases where the products are unique and not

reproduced over time, e.g. construction industry output and many of the customised

business services. As a result, alternative pricing techniques need to be used, often

involving compromise. Some of the approaches adopted include the use of model

pricing, collecting unit values for reasonably homogeneous components of a good or

service, input pricing and collecting charge–out rates (e.g. for a legal service).

Price measurement

10 The indexes are fixed weighted indexes of the Laspeyres form. The list of items and

the weights are updated periodically to ensure they remain representative. New index

series compiled using updated weights are linked to the previous series to maintain a

continuous series. Broad level weights are derived from an analysis of the latest available

input–output tables as well as other ABS and industry sources.

11 Where prices of items are expected to move in a similar way, many of the directly

priced items carry not only their own weight but also the weight of similar commodities.

Items and weights


E X P L A N A T O R Y N O T E S continued

23 The indexes are compiled using the SOP concept. Under this concept flows of

commodities are categorised according to their economic destination on a sequential

basis along the production chain. The basis for the categorisation is the Australian

input–output tables (1996–97). The primary categorisation is between final commodities

(i.e. commodities destined for final consumption, capital formation or export) and

non–final commodities (i.e. commodities that flow into intermediate consumption for

further processing).

24 This initial breakdown of the commodity flows into final and non–final represents a

useful economic dissection of producers' transactions. However, the non–final

commodities can flow into the production of both final and other non–final

commodities. Therefore, to aid analysis, the non–final commodity flows have been

divided on a sequential basis between Stage 1 (or preliminary) commodities and Stage 2

(or intermediate) commodities as illustrated below. This approach results in three

separate stages of production.

The SOP concept

22 In concept the valuation basis of the SOP indexes is basic prices (see paragraphs

5–9). However, the use of component series from existing ABS price collections in some

cases results in the pricing basis diverging from this ideal. For example, imports are

priced on a 'free–on–board' (f.o.b) basis, not 'cost, insurance, freight' (c.i.f), which

approximates basic prices.

Pric ing basis

19 Tables 1–9 and 24–25 present producer price indexes for the supply of

commodities to the Australian economy in a stage of production (SOP) framework. As

such, the indexes cover both domestically produced and imported commodities,

individually and in aggregate. The SOP indexes are compiled from data used in the

industry sector indexes, the international trade indexes and some additional data

collections. The indexes are calculated on the reference base 1998–99 = 100.0.

20 These indexes are compiled within the statistical framework outlined in

Information Paper: An Analytical Framework for Price Indexes in Australia, 1997 (cat.

no. 6421.0) and are designed to support the study of inflation.

21 A more detailed explanation of the SOP concept is contained in Information Paper:

Producer Price Index Developments, 1999 (cat. no. 6422.0). The index numbers in this

current publication cannot be directly compared with the experimental index numbers

in the information paper because:

! the coverage of the series has been expanded to include selected service and

construction industries; and

! the weighting patterns of the indexes have been updated to 1996–97 and the

reference base of the indexes has been updated to 1998–99 = 100.0.

ST A G E OF PR O D U C T I O N

(S O P ) PR O D U C E R PR I C E

IN D E X E S

Introduct ion

other producer price indexes relating to products primary to specific industries are

based on ANZSIC 2006. A mapping has been prepared to enable the ANZSIC 2006

producer price indexes to be represented under the ANZSIC 1993 stage of production

framework. Further information on the new industrial classification can be found in the

Appendix to the March quarter 2009 issue of this publication, as well as in Information

Paper: Update on ANZSIC 2006 Implementation for Producer and International Trade

Price Indexes, Australia, 2009 (cat. no. 6427.0.55.002).

Classi f icat ions continued



31 Producer price indexes conventionally relate to the output primary to domestic

industries, at basic prices, either inclusive or exclusive of exports. As the main focus is on

domestic inflation, exports are excluded from the headline SOP series 'Final (Stage 3)

commodities', as presented in the key figures on the front page and in tables 1–6. Index

series for Final (Stage 3) commodities including exports are available in tables 24 and 25.

32 Imports have also been incorporated within the framework, recognising that they

represent an important potential source of inflationary pressure.

33 In concept, the SOP indexes incorporate all flows of goods and services. However,

currently there is limited coverage of service industries and the construction industry by

the producer price indexes (see sections on construction industry and service industries

producer price indexes below).

34 Price indexes for most Transport and storage services (Division I of ANZSIC 1993)

and Property and business services (Division L of ANZSIC 1993) industries have been

included in the SOP framework. However, price series for most Final (Stage 3) consumer

services are not currently available on a sufficiently timely basis to allow their inclusion in

the indexes. This has the effect of decreasing the relative weight of consumer items

versus capital items in the final stage. It is intended to introduce additional services price

series as they become available, along with the consequential weight changes.

35 Index coverage for the construction industry (Division E of ANZSIC 1993) is

currently limited to the outputs primary to the following ANZSIC 1993 classes:

! 4111 House construction;

! 4112 Residential building construction n.e.c.;

! 4113 Non-residential building construction; and

Scope and coverage

28 The ABS has adopted a transaction flow approach in disaggregating commodity

supply into the various production stages. This approach means that the assignment of a

commodity to a stage is based on the proximity of its use in final demand.

29 Alternative degree of fabrication or principal destination approaches are employed

by statistical agencies in some other countries. These approaches result in the allocation

of particular commodities to one, and only one, stage. This would present particular

problems for Australia due to the openness of the economy, with exports (and imports)

equivalent to about 20% of gross domestic product. Commodities such as wheat, wool,

and iron ore are exported in large volumes as well as being further processed locally. The

allocation of such commodities to a single stage would be very arbitrary by necessity.

30 Adopting the transaction flow approach means, for example, that exported wheat

and domestically used wheat are treated as different commodities for index construction

purposes. Under this approach commodities transactions can be allocated to more than

one stage. Exported wheat is treated as a final (Stage 3) commodity while wheat used

domestically to make the flour used in bread production is considered to be a

preliminary (Stage 1) commodity. Similarly, commodities such as energy and containers

appear under all three categories.

Transact ion flow approach

25 The three stages are not aggregated in order to avoid the potential distorting effects

that may result from multiple counting of changes in transaction prices as commodities

flow through different production processes.

26 Under this framework, preliminary (Stage 1) commodities are used in the

production of intermediate (Stage 2) commodities; in turn intermediate (Stage 2)

commodities flow into the production of final (Stage 3) commodities.

27 The framework allows for analyses of price change as commodities flow through

production processes. Price changes for earlier stages of production may be indicators of

possible future price changes for later stages.

The SOP concept continued



43 Prior to the September quarter 2009, the manufacturing indexes were constructed

on a net sector basis with intra–sector transactions netted out. The scope of the output

indexes was therefore restricted to transactions in produced articles primary to the

defined sector of the Australian manufacturing industry that were sold or transferred to

domestic establishments outside that sector, or used as capital equipment, or exported.

The scope of the input indexes related to transactions in materials used in defined

sectors of the Australian manufacturing industry that were produced by domestic

establishments outside that sector, or imported.

Scope

39 The manufacturing output producer price indexes relate to selected products (i.e.

articles produced) primary to the manufacturing industry, while the manufacturing input

producer price indexes relate to materials used by establishments classified to the

manufacturing industry. They are important sources of data for the SOP indexes.

40 The manufacturing industry series are available on the ABS website

<http://www.abs.gov.au>. Tables 10 and 11 present the Price Indexes of Articles

Produced by Manufacturing Industries and tables 12–14 present the Price Indexes of

Materials Used in Manufacturing Industries. Basic prices are used for the output index

and purchasers' prices for the input index (see paragraphs 5–9). Therefore, as far as

possible, ex–factory prices are included in the output index. Delivered into factory prices

are included in the input index.

41 Table 30 presents Price Indexes of Copper Materials used in the manufacture of

electrical equipment.

42 The reference base for all of the ANZSIC 2006 classified manufacturing output and

input indexes linked to previous ANZSIC 1993 classified indexes is 1989–90 = 100.0. The

reference base for new manufacturing output and input indexes, introduced as part of

the ANZSIC 2006 implementation in the September quarter 2009, is 2001–02 = 100.0.

(Further information relating to the reference bases is presented in the Appendix to the

March quarter 2009 issue of this publication).

MA N U F A C T U R I N G IN D U S T R Y

PR O D U C E R PR I C E IN D E X E S

Introduct ion

38 Final (Stage 3) indexes are presented for consumer commodities. It should be

noted that this index is not directly comparable with the Consumer Price Index (CPI).

The two indexes differ significantly in concept and coverage. The major differences are:

! the pricing basis for the Final (Stage 3) SOP index is basic prices (see paragraph 22).

The CPI, however, measures changes in purchasers' prices, i.e. the actual retail

prices paid by households for products, inclusive of non–deductible taxes on

products, such as the GST, and any transport and trade margins;

! the coverage of the two indexes differs. Currently the Final (Stage 3) SOP index

mainly measures changes in the prices of goods, i.e. most household services are

currently excluded from the index (see paragraph 34). The CPI covers both goods

and services; and

! the indexes have different weighting bases. The weighting pattern for the Final

(Stage 3) SOP index is based on the 1996–97 input–output tables, while the CPI

weighting pattern is based on the 2009–10 Household Expenditure Survey.

Comparisons with the

Consumer Price Index

37 The items included in the indexes reflect the values of commodity flows, for both

domestic supply and imports, allocated to stages based on an analysis of detailed

1996–97 input–output tables. The index structures and weighting patterns for the SOP

indexes are shown in the Appendix of the December quarter 2002 issue of this

publication.

Items and weights

! 4121 Road and bridge construction.

36 As with services, it is intended to introduce further construction price series as they

become available.

Scope and coverage continued



48 The manufacturing division output index (table 10), from the September quarter

2009 onwards, measures changes in prices of articles that are primary to ANZSIC 2006

Division C – Manufacturing, that are sold or transferred to domestic establishments

within or outside the manufacturing division for further processing, intermediate use or

used as capital equipment or exported. Prior to the September quarter 2009 this index

was constructed on a net sector basis (see paragraphs 43–47 above).

49 Similarly, the output indexes for articles primary to manufacturing subdivisions and

groups (table 11) measure transactions within and outside the subdivision or group.

Prior to the September quarter 2009 these series were constructed on a net sector basis.

They excluded intermediate transactions in produced articles primary to the specific

manufacturing subdivision or group that were sold or transferred within that subdivision

or group for further processing.

Classi f icat ion

44 From the September quarter 2009, the manufacturing indexes are constructed on a

gross sector basis. The scope of the output indexes includes transactions in produced

articles primary to the defined sector of Australian manufacturing industries that are sold

or transferred to domestic establishments within or outside that sector for further

processing, or used as capital equipment, or exported. Articles are defined as all

products primary to the manufacturing industry excluding commission production

products and general government consumption of fixed capital. The scope of the input

indexes relates to transactions in materials used by establishments classified to the

manufacturing industry. Materials are defined as products primary to ANZSIC 2006

Divisions A – D (ie agriculture, forestry, fishing, mining, manufacturing and electricity,

gas, water and waste services) that are consumed by establishments classified to the

manufacturing industry.

45 An advantage of the net sector approach over the gross sector approach was that it

avoided the potential distorting effects that may have resulted from multiple counting of

changes in transaction prices as commodities flow through different production

processes. However, although conceptually valid, the exclusion of the internal

intermediate transactions from the net sector manufacturing division indexes resulted in

incomplete coverage of the targeted sector of the economy. Prior to the September

quarter 2009, in order to increase coverage, while still avoiding the multiple counting

issue, independent net sector measures were constructed for articles primary to

manufacturing subdivisions and groups on an ANZSIC 1993 basis. While having

intermediate transactions between different manufacturers within a given subdivision or

group netted out, intermediate transactions with manufacturers in other

subdivisions/groups were in–scope.

46 Following further analysis and discussions with key users of the indexes, the ABS

has determined that the potential for distortion from multiple counting of changes in

transaction prices is low. An advantage of the gross sector approach is improved

coverage of transactions primary to the targeted sector of the economy. Intermediate

transactions between manufacturers in other ANZSIC subdivisions or groups and

transactions between different manufacturers within the same ANZSIC subdivision or

group are in–scope. The change in concept from net to gross sector is not expected to

have a material impact, as the same influences affect prices whether transactions occur

within or outside the manufacturing industry.

47 The gross sector approach is more appropriate for use alongside the SOP

framework. Conceptually, the SOP indexes are economy–wide relating to transactions

primary to all the goods and services industries, and the gross sector approach is more

consistent with the system of national accounts.

Scope continued



58 The construction outputs price indexes (table 15) measure changes in prices of the

outputs primary to selected construction industry classes. Presented in this table is the

ANZSIC 2006 Subdivision (30) – Building construction which consists of three classes:

House construction (3011); Other residential building construction (3019); and

Non–residential building construction (3020). Outputs primary to the class Road and

bridge construction (3101) are also presented in this table.

Scope

54 The construction producer price indexes relate to outputs primary to ANZSIC 2006

Division E. The House building (i.e. material used) input index relates to products used

by establishments classified to ANZSIC 2006 Division E. These indexes are important

sources of data for the SOP index.

55 The construction industry series are available on the ABS website

<http://www.abs.gov.au>. Table 15 presents the Price index of the outputs that are

primary to the building construction subdivision and selected construction industry

classes. Tables 16 and 17 present the price index of Materials used in house building. The

pricing basis is basic prices for the output indexes and purchasers' prices for the input

index (see paragraphs 5–9 above). Therefore, as far as possible, builders' selling prices

are reflected in the output index, and delivered on site prices are reflected in the input

index.

56 Table 31 presents the price indexes for Asphalt supply and Asphalt placed for the

weighted average of six capital cities. These indexes measure changes in the price of the

supply, delivery and placement of selected grades of asphaltic concrete used in road

construction in capital city statistical divisions. As far as possible, actual transaction prices

are used in this index.

57 The output indexes are calculated on the reference base 1998–99 = 100.0 and the

input indexes on the reference base 1989–90 = 100.0.

CO N S T R U C T I O N IN D U S T R Y


Introduct ion

52 From the September quarter 2009, the items included in the manufacturing indexes

reflect the values of articles produced and materials used based on an analysis of detailed

2001–02 input–output tables.

53 The index structures and weighting patterns for the manufacturing input and

output division indexes are shown in Appendix 1 of Information Paper: Update on

ANZSIC 2006 Implementation for Producer and International Trade Price Indexes,

Australia, 2009 (cat. no. 6427.0.55.002). Index structures and weighting patterns for the

associated ANZSIC subdivisions and groups are available from the ABS website

<http://www.abs.gov.au> as data cubes in that information paper

(cat. no. 6427.0.55.002).

Items and weights

50 The manufacturing division input index (tables 12 and 13), from the September

quarter 2009 onwards, measures changes in prices of materials used in ANZSIC 2006

Division C – Manufacturing, that have been purchased or transferred in from domestic

establishments within or outside the manufacturing division, or imported. Prior to the

September quarter 2009 this index was constructed on a net sector basis (see paragraphs

43–47 above).

51 Similarly, the input indexes for materials used in manufacturing subdivisions and

groups (table 14) measure input purchases or transfers within and outside the

subdivision or group. Prior to the September quarter 2009 these indexes were

constructed on a net sector basis. They excluded intermediate transactions in materials

used in a specific manufacturing subdivision or group that were sold or transferred

within that subdivision or group for further processing.

Classi f icat ion continued



63 The mining industry series are available on the ABS website

<http://www.abs.gov.au>. Table 18 presents Price Indexes of Materials used in coal

mining. The pricing basis of the index is purchasers' prices (see paragraphs 5–9) and, as

far as possible, the prices included in the index are for items delivered to the mine site or

to the primary storage area for a group of mines.

64 The items included in the indexes reflect the value of materials used in the

operation of open cut and underground coal mines in Australia during 1999–2000. The

index structures and weighting patterns are available on request.

65 The indexes are calculated on the reference base 1989–90 = 100.0.

MI N I N G IN D U S T R Y PR O D U C E R

PR I C E IN D E X E S

61 ANZSIC class output indexes at the national level are aggregated to the relevant

group and subdivision using weights derived primarily from values of the supply of new

general construction products in Australia as measured in input–output statistics.

ANZSIC class indexes at the State and Territory level are aggregated to the national level

using proportions based on the value of work done by State and Territory and type of

construction as measured by ABS building and construction activity statistics. From the

December quarter 2007 index numbers have been calculated using an updated weighting

pattern in which input-output values for 2001–02 have replaced 1996–97 values and new

State and Territory activity proportions have been derived from the two calendar years

2005 and 2006 to replace previous proportions derived from a 5 year average of the years

1994–95 to 1998–99. The indexes generally use prices for work undertaken in each

capital city, as construction activity in the city is taken to represent the whole State or

Territory. For Queensland, however, other residential building construction and

non-residential building construction also use prices obtained for North Queensland.

62 The items and weights for the price index of Materials used in house building were

derived from reported quantities of each material used in selected representative houses

in the three years ending 2002–03. The weighting pattern for each capital city index will

reflect variations in prices for the cities as applied to an Australian average basket of

house building materials, with some allowance for city specific building practices e.g. the

differential use of steel and timber materials in Perth and Adelaide compared with the

other capital cities. The weighting patterns for the price index of Materials used in house

building are set out in Appendix 2 of the September quarter 2005 issue of this

publication. Note that the weights shown are values based on the quantities of various

materials used in house building over the 3 years ended 2002–03, valued at the

September quarter 2005 prices.

Items and weights

59 The construction input indexes (tables 16 and 17) measure changes in prices of

Materials used in house building, where a house is defined as a detached building

predominantly used for long–term residential purposes and consisting of only one

dwelling unit. ANZSIC class House construction (3011) approximates the industry scope

of the index.

60 The input index does not explicitly cover alterations, additions, renovations and

repairs. It relates to the statistical division for each State capital city.

Scope continued



70 The development of the services price collections has involved a wide range of

diverse industries with different measurement problems. Accordingly, extensive

consultation with industry associations and individual businesses has been undertaken to

determine the most viable approach, on a case–by–case basis.

71 Characteristics found within the services sector of the economy have complicated

the task of price measurement.

72 The tendency within many industries to provide unique, one–off services tailored

to the needs of individual customers has posed difficulties in establishing continuity of

pricing to constant quality.

73 The 'bundling' of a range of different component services within the one

transaction or contract has required investigation of the feasibility of 'unbundling', that is,

obtaining separate prices for each of the components of the total service. Where this has

not proven to be feasible, the whole service bundle has been priced in total.

74 Respondent businesses are asked to report details of any discounts they offer so

that actual transactions prices can be calculated. However, as discounts are sometimes

negotiated between individual buyers and sellers in relation to particular transactions,

identifying discounts has not always been straightforward.

Price measurement

69 From the September quarter 2009, ANZSIC 2006 class indexes are aggregated to the

relevant group, subdivision and division using weights derived from 2001–02

input-output domestic production values, in combination with data from other ABS

surveys and industry sources. Prior to this weights for these series on an ANZSIC 1993

basis were derived from 1996–97 input-output values.

Items and weights

68 The service industry series measure changes in prices of services primarily defined

to selected ANZSIC 2006 industries, excluding general government consumption of fixed

capital. Selected output for these industries is provided in tables 19–23. Note that some

ANZSIC classes do not yet have established indexes, and thus are not represented within

these tables.

Scope

66 The service industry series are available on the ABS website

<http://www.abs.gov.au>. Tables 19–23 present index numbers for selected services

primary to the following ANZSIC 2006 divisions; Division I – Transport, postal and

warehousing; Division J – Information media and telecommunications; Division L –

Rental, hiring and real estate services; Division M – Professional, scientific and technical

services; Division N – Administrative and support services; Division O – Public

administration and safety and Division S – Other services. The pricing basis of each index

is basic prices (see paragraphs 5–9). Prices used in the index relate to the amount

received by the service provider. These indexes are important sources of data for the

SOP indexes. The original index numbers are calculated on the reference base 1998–99

= 100.0. New indexes created as part of the implementation of ANZSIC 2006 in the

September quarter 2009 have been backcast to September 2001. These index numbers

are calculated on the reference base 2001–02 = 100.0.

67 The currently available service industry indexes represent the results to date of a

program to progressively extend the scope of the producer price indexes into the service

sectors of the economy. First results from the program were published in March 1999, by

way of experimental indexes, in Information Paper: Producer Price Index

Developments 1999 (cat. no. 6422.0). Similarly, changes to the indexes published from

the September quarter 2009 on the ANZSIC 2006 basis have been documented in

Information Paper: Update on ANZSIC 2006 Implementation for Producer and

International Trade Price Indexes, Australia, 2009 (cat. no. 6427.0.55.002).

SE R V I C E IN D U S T R I E S


Introduct ion



79 Care should be exercised when interpreting quarter–to–quarter movements in the

indexes as short–term movements do not necessarily indicate changes in trend.

80 Movements in indexes from one period to another can be expressed either as

changes in 'index points' or as percentage changes. The following example illustrates the

method of calculating index points changes and percentage changes between any two

periods:

Stage of Production: Total Final commodities index numbers

June quarter 2010 135.2 (see table 1)

less June quarter 2009 133.9 (see table 1)

Change in index points 1.3

Percentage change 1.3/133.9 x 100 = 1.0% (see table 2)

81 Tables 5, 6 and 7 provide analyses of the index points contribution which ANZSIC

groups make to the stage of production final commodities indexes, in total, and then

separately for domestic and imported commodities. For example, in table 5 petroleum

refining contributed 4.36 index points to the Total Final commodities index number of

141.4 for the June quarter 2012 and 0.18 index points to the net change of 0.7 index

points between the March 2012 and June 2012 quarters.

82 Tables 8 and 9 analyse the contributions to the intermediate and preliminary

commodities index numbers, respectively.

AN A L Y S I S OF IN D E X

CH A N G E S

77 Index numbers for financial years are simple averages of the relevant quarterly

index numbers.

78 Indexes for the price index of Materials used in house building are presented

separately for each of the six State capital cities. These city indexes measure price

movements over time for each city. They do not measure differences in price levels

between cities.

I N D E X NU M B E R S

76 It is planned to make available indexes for the majority of remaining ANZSIC 2006

classes within the services divisions after they have been developed from experimental to

production status. At such time these new indexes would contribute to the broader SOP

indexes in this publication and associated outputs available on the ABS website

<http://www.abs.gov.au>.

Future developments

75 The deregulation of some service industries leads to structural changes and more

complex pricing practices. To deal with this, samples are continually updated to

incorporate new businesses and pricing methodologies are reviewed over time.

Price measurement continued



84 Users may also wish to refer to the following related publications, and other data

products that are available free of charge from the ABS website.

International Trade Price Indexes, Australia (cat. no. 6457.0)

Consumer Price Index, Australia (cat. no. 6401.0)

Labour Price Index, Australia (cat. no. 6345.0)

Australian National Accounts: Input–Output Tables (cat. no. 5209.0)

Balance of Payments and International Investment Position, Australia

(cat. no. 5302.0)

85 Current publications and other products released by the ABS are listed on the ABS

website <http://www.abs.gov.au>. The ABS also issues a daily Release Advice on the

website which details products to be released in the week ahead.

RE L A T E D PU B L I C A T I O N S

83 Further information on recent price index developments in the ABS is presented in

the following publications:

Information Paper: Producer and International Trade Price Indexes; Concepts,

Sources and Methods, 2006 (cat. no. 6429.0)

Information Paper: Changes to Time Series Spreadsheets for Producer Price

Indexes, Australia, Feb 2006 (cat. no. 6427.0.55.001)

Information Paper: Update on ANZSIC 2006 Implementation for Producer and

International Trade Price Indexes, Australia, 2009 (cat. no. 6427.0.55.002)

Information Paper: Review of the Producer and International Trade Price

Indexes, 2011 (cat. no. 6427.0.55.003)

Information Paper: Outcome of the Review of the Producer and International

Trade Price Indexes, 2012 (cat. no. 6427.0.55.004)

Information Paper: An Analytical Framework for Price Indexes in Australia, 1997

(cat. no. 6421.0)

Information Paper: Producer Price Index Developments, 1999 (cat. no. 6422.0)

Information Paper: Review of the Import Price Index and Export Price Index,

Australia, 1999 (cat. no. 6424.0)

Information Paper: Price Indexes and The New Tax System, 2000 (cat. no. 6425.0)

Information Paper: The Introduction of Hedonics Price Indexes for Personal

Computers, 2005 (cat. no. 6458.0)

Information Paper: Changes to the Weights of the Price Indexes for the Output of

the General Construction Industry, Australia, 2008 (cat. no. 6406.0)

Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006,

(Revision 1.0) (cat. no. 1292.0)

Information Paper: Update on ANZSIC 2006 Implementation, Australia, 2008

(cat. no. 1295.0.55.001)

FU R T H E R IN F O R M A T I O N

stage of productionSOP

not elsewhere classifiedn.e.c.

manufacturingmfg

free on boardf.o.b.

cost, insurance and freightc.i.f.

Australian and New Zealand Standard Industrial ClassificationANZSIC

Australian Bureau of StatisticsABSAB B R E V I A T I O N S



The SOP indexes will be presented using the ANZSIC 2006 classification from the

September quarter 2012.

Major outcomes from the implementation of ANZSIC 2006 will include:

! some restructuring and/or renaming of previous ANZSIC 1993 series;

! discontinuation of some series (see below);

! introduction of some new series;

! introduction of a new weighting pattern; and

! a changed presentation and format of Producer Price Indexes, Australia

(cat. no. 6427.0).

The discontinued series for the SOP, Final commodities will be:

! Other food manufacturing (group 217);

! Printing and services to printing (group 241);

! Publishing (group 242);

! Other chemical product manufacturing (group 254);

! Plastic product manufacturing (group 256);

! Iron and steel manufacturing (group 271);

! Sheet metal product manufacturing (group 275);

! Electrical equipment and appliance manufacturing (group 285);

! Industrial machinery and equipment manufacturing (group 286);

! Non–building construction (group 412);

! Services to transport (subdivision 66);

! Technical services (group 782); and

! Computer services (group 783).

The discontinued series for the SOP, Intermediate commodities will be:

! Services to agriculture; hunting and trapping (subdivision 02);







CH A N G E S FR O M TH E

SE P T E M B E R QU A R T E R 20 1 2

In 2002, the Australian Bureau of Statistics (ABS) and Statistics New Zealand commenced

a review to maintain the currency and relevance of ANZSIC. The review found that since

the release of the original classification in 1993 there had been significant changes in

industrial and business activities in both Australia and New Zealand. The 2006 edition of

ANZSIC was released in February 2006. An electronic version of the ANZSIC 2006

classification is available free of charge from the ABS website, titled Australian and New

Zealand Standard Industrial Classification, (ANZSIC), 2006 (cat. no. 1292.0).

The ABS introduced the PPI and ITPI series (excluding SOP) on an ANZSIC 2006 basis in

the September quarter 2009 (See Information Paper: Update on ANZSIC 2006

Implementation for Producer and International Trade Price Indexes, 2009

(cat. no. 6427.0.55.002)). An overview of the changes relating to the implementation of

ANZSIC 2006 in the PPI and ITPI series was also presented in the Appendix of the March

quarter 2009 issues of Producer Price Indexes, Australia (cat. no. 6427.0) and

International Trade Price Indexes, Australia (cat. no. 6457.0). Correspondences

between the old (ANZSIC 1993) and new (ANZSIC 2006) series are available via the

'Downloads' tab of the March quarter 2009 issues on the ABS website.

BA C K G R O U N D

This Appendix provides information on the changes to the Stage of Production (SOP)

indexes as a result of updating the industrial classification from the 1993 edition to the

2006 edition of the Australian and New Zealand Standard Industrial Classification

(ANZSIC 2006).

I N T R O D U C T I O N


A P P E N D I X S T A G E O F PR O D U C T I O N A N D I M P L E M E N T A T I O N O F A N Z S I C20 0 6

! Structural metal product manufacturing (group 274);




! Air and space transport (group 640);

! Other transport (group 650);

! Services to transport (group 670);

! Property operators and developers (group 771);



The discontinued series for the SOP, Preliminary commodities will be:

! Services to agriculture; hunting and trapping (subdivision 02);







! Structural metal product manufacturing (group 274);




! Air and space transport (group 640);

! Other transport (group 650);

! Services to transport (group 670);

! Property operators and developers (group 771);



From the September quarter 2012, the ABS will provide further clarification on the

concept of the SOP indexes in the Explanatory Notes of the publication Producer Price

Indexes, Australia (cat. no. 6427.0) and within an updated Producer and International

Trade Price Indexes: Concepts, Sources and Methods publication, which will be released

in early 2013. To aid in this clarification, the SOP indexes will be renamed as follows:

! Stage 3 (Final) will become Final Demand – Products consumed as Final Demand;

! Stage 2 (Intermediate) will become Intermediate Demand – Products consumed as

inputs into the production of Final Demand; and

! Stage 1 (Preliminary) will become Preliminary Demand – Products consumed as

inputs into the production of Intermediate Demand.

Tables 1, 2 and 3 below provide correspondences between the old (ANZSIC 1993) and

new (ANZSIC 2006) SOP series currently released in Producer Price Indexes, Australia

(cat. no. 6427.0). Discontinued and expected new series are also shown.

The ABS is undertaking detailed analysis of the 2007–08 Input–Output (I–O) tables to

derive new weights for the suite of PPIs and SOP indexes. This analysis will include

examination of all new and existing series to ensure that all published data conforms

with the ABS data release policies. Therefore, the series presented in Tables 1, 2 and 3

below are preliminary and subject to change pending the results of this analysis.

CH A N G E S FR O M TH E

SE P T E M B E R QU A R T E R 20 1 2

continued


A P P E N D I X S T A G E O F PR O D U C T I O N A N D I M P L E M E N T A T I O N O F A N Z S I C20 0 6 continued

TABLE 1 STAGE OF PRODUCT ION , FINAL DEMAND —AUSTRAL IAN AND NEW ZEALAND STANDARD INDUSTRIAL CLASSIF ICAT ION (ANZSIC) 1993 to 2006 Cor respondence Tab le

ANZSIC 1993 ANZSIC 2006 Becomes Status

012�013Grain, sheep, beef and dairy cattle farming 014, 016

Grain, sheep, beef and dairy cattle farming (a)

011, 014�016 Other agriculture011�013, 015, 017�019 Other agriculture (b)

04 Commercial fishing 04 Fishing (b)

211Meat and meat product manufacturing 111

Meat and meat product manufacturing (a)

212 Dairy product manufacturing 113 Dairy product manufacturing (a)213 Fruit and vegetable processing 114 Fruit and vegetable processing (a)214 Oil and fat manufacturing 115 Oil and fat manufacturing (a)

215Flour mill and cereal food manufacturing 116

Grain mill and cereal product manufacturing (a)

216 Bakery product manufacturing 117 Bakery product manufacturing (a)217 Other food manufacturing Discontinued, split into 112, 118, 119, 121 (part) (c)

112 Seafood processing (c)

118Sugar and confectionery manufacturing (c)

119 Other food product manufacturing (c)218 Beverage and malt manufacturing 121 Beverage manufacturing (b)

219 Tobacco product manufacturing 122Cigarette and tobacco product manufacturing (a)

221Textile fibre, yarn and woven fabric manufacturing 131 Textile manufacturing (a)

222 Textile product manufacturing 133 Textile product manufacturing (a)223 Knitting mills 134 Knitting product manufacturing (a)224 Clothing manufacturing 1351 Clothing manufacturing (a)225 Footwear manufacturing 1352 Footwear manufacturing (a)

226Leather and leather product manufacturing 132

Leather tanning, fur dressing and leather product manufacturing (a)

232�233Other wood, paper and paper product manufacturing 149,15

Other wood, paper and paper product manufacturing (b)

241 Printing and services to printing Discontinued, split into 152, 161

152Converted paper product manufacturing (c)

161 Printing and printing support services (c)242 Publishing Discontinued, included in 541

541Newspaper, periodical, book and directory publishing (c)

243Recorded media manufacturing and publishing 162 Reproduction of recorded media (a)

251 Petroleum refining 1701Petroleum refining and petroleum fuel manufacturing (a)

253 Basic chemical manufacturing 182 Basic polymer manufacturing (b)

254Other chemical product manufacturing Discontinued, split into 184, 185, 189, 191

184Pharmaceutical and medicinal product manufacturing (c)

185Cleaning compound and toiletry preparation manufacturing (c)

189Other basic chemical product manufacturing (c)

191 Polymer product manufacturing (c)

255 Rubber product manufacturing 192 Natural rubber product manufacturing (b)256 Plastic product manufacturing Discontinued, included in 191 (part)


Table 5 of Producer Price Indexes, Australia (cat. no. 6427.0)



271 Iron and steel manufacturing Discontinued, included in 212 (part)

212Basic ferrous metal product manufacturing (c)

273Non�ferrous basic metal product manufacturing 214

Basic non�ferrous metal product manufacturing (a)

275 Sheet metal product manufacturing Discontinued, included in 223 (part)223 Metal container manufacturing (c)

276Fabricated metal product manufacturing 229

Other fabricated metal product manufacturing (b)

281 Motor vehicle and part manufacturing 231Motor vehicle and motor vehicle part manufacturing (b)

282Other transport equipment manufacturing 239

Other transport equipment manufacturing (b)

283Photographic and scientific equipment manufacturing 241

Professional and scientific equipment manufacturing (b)

284 Electronic equipment manufacturing 242Computer and electronic equipment manufacturing (b)

285Electrical equipment and appliance manufacturing Discontinued, split into 243, 244

243 Electrical equipment manufacturing (c)

244 Domestic appliance manufacturing (c)

286Industrial machinery and equipment manufacturing Discontinued, split into 245, 246, 249

245Pump, compressor, heating and ventilation equipment manufacturing (c)

246Specialised machinery and equipment manufacturing (c)

249Other machinery and equipment manufacturing (c)

29 Other manufacturing 25 Furniture and other manufacturing (b)36�37 Electricity, gas and water supply 26�28 Electricity, Gas & Water Supply (b)411 Building construction 30 Building construction (a)412 Non�building construction Discontinued

3101 Road and bridge construction (c)571 Accommodation 44 Accommodation (a)611 Road freight transport 461 Road freight transport (b)620 Rail transport 471 Rail freight transport (b)630�640 Water, air and space transport 481 Water freight transport (b)66 Services to transport Discontinued772 Real estate agents 672 Real estate services (b)782 Technical services Discontinued, included in 692 (part)

692Architectural, engineering and technical services (c)

783 Computer services Discontinued, split into 592, 700

592

Data processing, web hosting and electronic information storage services (c)

700Computer system design and related services (c)

784 Legal and accounting services 693 Legal and accounting services (b)Footnotes: (a) Series continuing. (b) Series continuing compositional change. (c) Expected new series.



TABLE 2 STAGE OF PRODUCT ION , INTERMED IATE DEMAND —AUSTRAL IAN AND NEW ZEALAND STANDARD INDUSTRIAL CLASSIF ICAT ION (ANZSIC) 1993 to 2006 Cor respondence Tab le




011, 014�016 Other agriculture011�013, 015, 017�019 Other agriculture (b)

02Services to agriculture; hunting and trapping Discontinued, included in 04 (part)

04 Commercial fishing 04 Fishing (b)110 Coal mining 060 Coal mining (a)120 Oil and gas extraction 070 Oil and gas extraction (a)131 Metal ore mining 080 Metal ore mining (a)

14 Other mining 09Non�metallic mineral mining and quarrying (a)

211 Meat and meat product manufacturing 111 Meat and meat product manufacturing (a)212 Dairy product manufacturing 113 Dairy product manufacturing (a)

213�214Fruit and vegetable processing; oil and fat manufacturing 114�115

Fruit and vegetable processing; oil and fat manufacturing (a)

215 Flour mill and cereal food manufacturing 116Grain mill and cereal product manufacturing (a)

216 Bakery product manufacturing 117 Bakery product manufacturing (a)217 Other food manufacturing Discontinued, split into 112, 118, 119, 121 (part)


118 Sugar and confectionery manufacturing (c)119 Other food product manufacturing (c)

218 Beverage and malt manufacturing 121 Beverage manufacturing (b)

22Textile, clothing, footwear and leather manufacturing 13

Textile, leather, clothing and footwear manufacturing (a)

231 Log sawmilling and timber dressing 141 Log sawmilling and timber dressing (b)232 Other wood product manufacturing 149 Other wood product manufacturing (b)

233 Paper and paper product manufacturing 15Pulp, paper and converted paper product manufacturing (b)


152 Converted paper product manufacturing (c)





254 Other chemical product manufacturing Discontinued, split into 184, 185, 189, 191







26Non�metallic mineral product manufacturing 20

Non�metallic mineral product manufacturing (a)






272 Basic non�ferrous metal manufacturing 213 Basic non�ferrous metal manufacturing (a)



274 Structural metal product manufacturing Discontinued, included in 222 (part)

222 Structural metal product manufacturing (c)275 Sheet metal product manufacturing Discontinued, included in 223 (part)

223 Metal container manufacturing (c)

276 Fabricated metal product manufacturing 229Other fabricated metal product manufacturing (b)








243 Electrical equipment manufacturing (c)244 Domestic appliance manufacturing (c)





29 Other manufacturing 25 Furniture and other manufacturing (b)36�37 Electricity, gas and water supply 26�28 Electricity, Gas & Water Supply (b)571 Accommodation 44 Accommodation (a)611 Road freight transport 461 Road freight transport (b)620 Rail transport 471 Rail freight transport (b)630 Water transport 481 Water freight transport (b)640 Air and space transport Discontinued650 Other transport Discontinued66 Services to transport Discontinued670 Storage 530 Warehousing and storage services (a)771 Property operators and developers Discontinued772 Real estate agents 672 Real estate services (b)

774Machinery and equipment hiring and leasing 66

Rental and hiring services (except real estate) (b)

782 Technical services Discontinued, included in 692 (part)



592Data processing, web hosting and electronic info. storage services (c)


784 Legal and accounting services 693 Legal and accounting services (b)

785Marketing and business management services

Discontinued, split into 692 (part), 695 (part), 696 (part)


695 Market research and statistical services (c)786 Other business services Discontinued

721 Employment services (c)729 Other administrative services (c)

Footnotes: (a) Series continuing. (b) Series continuing compositional change. (c) Expected new series.



TABLE 3 STAGE OF PRODUCT ION , PREL IM INARY DEMAND— AUSTRAL IAN AND NEW ZEALAND STANDARD INDUSTRIAL CLASSIF ICAT ION (ANZSIC) 1993 to 2006 Cor respondence Tab le




011, 014�016 Other agriculture011�013, 015, 017� 019 Other agriculture (b)

02Services to agriculture; hunting and trapping Discontinued

030 Forestry and logging 030 Forestry and logging (a)110 Coal mining 060 Coal mining (a)120 Oil and gas extraction 070 Oil and gas extraction (a)131 Metal ore mining 080 Metal ore mining (a)

14 Other mining 099Other non�metallic mineral mining and quarrying (a)

211 Meat and meat product manufacturing 111 Meat and meat product manufacturing (a)212 Dairy product manufacturing 113 Dairy product manufacturing (a)

213�214Fruit and vegetable processing; oil and fat manufacturing 114�115

Fruit and vegetable processing; oil and fat manufacturing (a)

215 Flour mill and cereal food manufacturing 116Grain mill and cereal product manufacturing (a)

216 Bakery product manufacturing 117 Bakery product manufacturing (a)217 Other food manufacturing Discontinued, split into 112, 118, 119, 121 (part)


118 Sugar and confectionery manufacturing (c)119 Other food product manufacturing (c)

218 Beverage and malt manufacturing 121 Beverage manufacturing (b)

22Textile, clothing, footwear and leather manufacturing 13

Textile, leather, clothing and footwear manufacturing (a)

231 Log sawmilling and timber dressing 141 Log sawmilling and timber dressing (b)232 Other wood product manufacturing 149 Other wood product manufacturing (b)

233 Paper and paper product manufacturing 15Pulp, paper and converted paper product manufacturing (b)


152 Converted paper product manufacturing (c)





254 Other chemical product manufacturing Discontinued, split into 184, 185, 189, 191







26Non�metallic mineral product manufacturing 20

Non�metallic mineral product manufacturing (a)






272 Basic non�ferrous metal manufacturing 213 Basic non�ferrous metal manufacturing (a)



274 Structural metal product manufacturing Discontinued, included in 222 (part)

222 Structural metal product manufacturing (c)275 Sheet metal product manufacturing Discontinued, included in 223 (part)

223 Metal container manufacturing (c)

276 Fabricated metal product manufacturing 229Other fabricated metal product manufacturing (b)








243 Electrical equipment manufacturing (c)244 Domestic appliance manufacturing (c)





36�37 Electricity, gas and water supply 26�28 Electricity, Gas & Water Supply (b)571 Accommodation 44 Accommodation (a)611 Road freight transport 461 Road freight transport (b)620 Rail transport 471 Rail freight transport (b)630 Water transport 481 Water freight transport (b)640 Air and space transport Discontinued650 Other transport Discontinued66 Services to transport Discontinued670 Storage 530 Warehousing and storage services (a)771 Property operators and developers Discontinued772 Real estate agents 672 Real estate services (b)

774Machinery and equipment hiring and leasing 66

Rental and hiring services (except real estate) (b)

782 Technical services Discontinued, included in 692 (part)



592Data processing, web hosting and electronic info. storage services (c)


784 Legal and accounting services 693 Legal and accounting services (b)

785Marketing and business management services

Discontinued, split into 692 (part), 695 (part), 696 (part)


695 Market research and statistical services (c)786 Other business services Discontinued

721 Employment services (c)729 Other administrative services (c)

Footnotes: (a) Series continuing. (b) Series continuing compositional change. (c) Expected new series.



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© Commonwealth of Australia 2012Produced by the Australian Bureau of Statistics

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ISSN 1445–2618

producer price indexes australia...! partly offset by falls in the prices received for grain, sheep,...

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