5260.0.55.004 - Experimental Estimates of Industry Level KLEMS Multifactor Productivity, 2014-15
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 07/03/2017
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ANALYSIS OF RESULTS
In 2014-15, positive KLEMS MFP growth was recorded by 9 of the 16 market sector industries.
The strongest MFP growth was recorded in Mining (3.8 %pts); Other services (2.7 %pts); and Financial and insurance services (1.9 %pts). The largest decreases in MFP were recorded in Arts and recreation services (2.3 %pts); Professional, scientific and technical services (2.1 %pts); and Transport, postal and warehousing (1.4 %pts).
Reflecting improvements to infrastructure capacity, Mining continued to record positive output growth (3.6%) in 2014-15 building on a strong 2013-14 result (6.0%). The main contributor to Mining output growth in 2014-15 was MFP (3.8 %pts). Non-IT capital services, which averaged 5.0 %pts contribution between 2006-07 and 2013-14 has tapered off in 2014-15, contributing 2.8 %pts. Hours worked, which has recorded positive contributions since 2000-01, detracted 2.5 %pts from Mining output growth in 2014-15.
Other services also saw strong MFP growth of 2.7 %pts. Output in this industry grew 3.0% with intermediate input Services contributing to half of that growth.
Financial and insurance services recorded strong Gross output growth of 4.9% in 2014-15. Services intermediate input and MFP were the main contributors (2.6 %pts and 1.9 %pts respectively).
Electricity, gas, water and waste services recorded its strongest MFP growth since 1996-97 (1.4 %pts). Although gross output growth was modest (1.2%), falls were recorded in the contributions from Hours worked (1.0 %pts) and Materials (0.7 %pts).
For Arts and recreation services, strong contributions from Hours worked, Services intermediate input, and Capital inputs outpaced Gross output growth, resulting in MFP recording a fall of 2.4 %pts. This result offset most of the positive MFP recorded a year earlier.
KEY FIGURES, By Market Sector Industries, Annual points contribution to growth 2014-15 (a)
(b) Gross output based MFP, quality adjusted hours worked basis
Contributions to output growth are calculated by multiplying the growth in inputs by their respective cost share. Two period average cost shares for each industry are reported in the table below. For example, in 2014-15, Services intermediate input comprised almost one third of Agriculture, forestry and fishing current price gross output.
Variations in the cost shares for 2014-15 show that industry cost structures are very diverse:
Individual industries may also undergo structural change over time such as, for example, responding to changes in the relative prices of inputs. This can cause industry's cost shares to vary. For example, Electricity, gas, water and waste services has become less Energy intensive over time, while Construction is increasingly using Services intermediate input.
TWO PERIOD AVERAGE COST SHARES, By Market Sector Industries, percentage, 2014-15 (a) (b)
(b) Percentages may not add to 100% due to rounding
(c) Combined Hours worked and Composition
This publication incorporates revisions implemented in the 2015-16 edition of Australian System of National Accounts (ASNA) (cat. 5204.0). They include:
There were also revisions within intermediate input indexes and their cost shares, particularly Materials and Services (across the full time span), due to the reclassification of the supply-use product Printing from Materials to Services. The main industries impacted are Retail trade, and Information, media and telecommunications. This reclassification has no impact on total intermediate inputs.
Revisions were also incorporated to Labour composition in the post-2011 census period, due to a correction in the extrapolation method. This error had previously overstated growth in Labour composition (and understated MFP on a quality-adjusted hours worked basis)
More information on revisions is available in the ASNA as well as the 2015-16 edition of Estimates of Industry Multifactor Productivity (cat. no. 5260.0.55.002).
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