The industrial production index (IPI) grew 1.3% y-o-y in January, marking the fourth consecutive month of overall growth, driven by manufacturing, water supply, sewerage, waste management, and remediation activities, according to a preliminary monthly report (pdf) from the General Authority for Statistics (Gastat). On a monthly basis, the index remained unchanged.

The manufacturing sub-index rose 4.0% y-o-y, on the back of a 4.3% increase in the manufacturing of pet coke and refined petroleum products and a 4.2% rise in chemicals and chemical products. Manufacturing made up 35% of the overall IPI, making it the second-heaviest component after oil and minerals. The sub-index grew 0.3% m-o-m.

Mining and quarrying activity was down 0.4% y-o-y as oil production dipped to 8.92 mn bbl / d, down from 8.96 mn bbl / d in January 2024. The mining and quarrying sector activity made up 61.4% of the overall IPI. The sub-index inched up 0.1% m-o-m.

The index for non-oil activities rose 3.6% y-o-y in January, while the index for oil inched up 0.4% y-o-y. On a monthly basis. Oil activities inched up 0.1%, while non-oil activities dipped 0.2% m-o-m.

IN CONTEXT- Non-oil sector growth in the Kingdom recorded its best performance since September 2014 in January, with the country seeing the fastest increase in total new orders since June 2011. The seasonally adjusted headline PMI figure rose to 60.5, up from 58.4 in December — which was its first slowdown since August despite a record increase in sales and new orders back then — staying well above the 50.0 growth threshold.

Utilities had contrasting figures: The sub-index for electricity, gas, steam, and air conditioning supply activity dropped 1.7% y-o-y in January (down 9.4% m-o-m), while water supply, sewage, and waste management and remediation activities were up 12.8% (up 8.7% m-o-m).

Tags: