Final Demand (Excluding exports) rose 1.6% in the quarter ended March 2022

On 29 April 2022, the Australian Bureau of Statistics posted Producer Price Index numbers. The final demand increased 1.6% in March 2022 quarter and 4.9% over past 12 months. As per the ABS, the annual increase of 4.9% in final demand to March 2022 is the most significant increase since December 2008.

The main factors behind the growth of Final demand:

• The rise in the output of the building construction by 3% is due to an increase in the price of materials with supply constraints for timber and metals, high freight costs, and skill trade shortage.
• Petroleum refining and petroleum fuel manufacturing also increased by 17.6% because of the rise in the global crude oil prices and OPEC+ countries falling short of agreed production increase.
• Heavy and Civil engineering construction grew 2.4% due to the increase in prices of steel and crude oil and skilled trade shortage.

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