The industrial production index (IPI) grew 2.1% y-o-y in December, marking the third consecutive month of an overall increase in manufacturing activity, according to a monthly report (pdf) from the General Authority for Statistics (Gastat). On a monthly basis, the index posted a 1.3% increase. The IPI uses survey data to measure changes in industrial production volumes across the Kingdom.

The manufacturing sub-index was up 6.3% y-o-y on the back of a 9.3% increase in the manufacture of pet coke and refined petroleum products, and a 4.8% rise in chemicals and chemical products. Manufacturing makes up 35% of the overall IPI, making it the second-heaviest component after oil and minerals. The sub-index also rose 5.1% m-o-m.

Mining and quarrying activity declined 0.4% y-o-y as oil production dipped to 8.91 mn bbl / d, down from 8.94 mn bbl / d in 2023. The mining and quarrying sector activity makes up 61.4% of the overall IPI. The sub-index also fell 0.2% m-o-m.

The index for non-oil activities was up 4.0% 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 1.3% y-o-y.

IN CONTEXT- December saw non-oil sector growth slow down for the first time since August, despite a record increase in sales and new orders. This followed the sector’s strongest performance in November.

Utilities had mixed results: The sub-index for electricity, gas, steam, and air conditioning supply activity dropped 1.9% y-o-y in December, while water supply, sewage, and waste management and remediation activities were up 0.8%.

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