The local industrial production index grew 3.4% y-o-y in November, driven by an overall increase in manufacturing activity for the second consecutive month, according to the General Authority for Statistics’ (Gastat) monthly report (pdf). On a monthly basis, however, the index posted a 2.3% dip. The IPI uses survey data to measure changes in industrial production volumes across the Kingdom.

The manufacturing sub-index was up 7.2% y-o-y on the back of a 17.6% increase in the manufacture of coke and refined petroleum products, a 1.5% rise in food products and a 1.6% increase in chemicals and chemical products. Manufacturing makes up 35% of the overall IPI, making it the second-heaviest component after oil and minerals. On a monthly basis, the sub-index posted a 3.1% decrease.

Mining and quarrying activity increased 1.2% y-o-y, as oil production rose to 8.93 mn bbl / d, up from 8.82 mn bbl / d in 2023. Mining and quarrying sector activity makes up 61.4% of the overall IPI. The subindex also fell 0.5% m-o-m.

The index for non-oil activities was up 2.4% y-o-y on the back of growth across all non-oil sectors, except for electricity, gas, steam, and air conditioning supply. Meanwhile, the index for oil increased by 3.8% y-o-y.

IN CONTEXT- Saudi’s non-oil business sector logged its strongest performance since July 2023 in November, marking four consecutive months of gains as solid consumer demand drove new orders despite higher cost pressures.

Utilities had mixed results: The sub-index for electricity, gas, steam, and air conditioning supply activity dropped 2.1% y-o-y, while water supply, sewage, and waste management and remediation activities were up 10.5% compared to the same month in 2023.

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