The industrial production index (IPI) fell 0.2% y-o-y in February, snapping a four-monthgrowth streak due to a decline in mining and quarrying activity, according to a preliminary report (pdf) from the General Authority for Statistics (Gastat). The IPI increased by 0.7% on a monthly basis.

The main culprit: The mining and quarrying activity — which made up 61.4% of the index — decreased 0.7% y-o-y during the month due to a slowdown in oil production to 8.95 mn barrels per day (bbl / d), down from 9.01 mn bbl / d in February 2024. The sector’s sub-index also inched up 0.3% m-o-m.

The manufacturing sub-index was up 0.2% y-o-y on the back of 3.5% growth in the manufacturing of chemicals and chemical products and a 6.3% increase in food products. Growth was largely offset by a 5.5% y-o-y decline in coke and refined petroleum products. Meanwhile, the sector’s sub-index rose 0.9% m-o-m. Manufacturing makes up for 35% of the overall IPI, making it the second-heaviest component after oil and minerals.

The non-oil activities index rose 3.2% y-o-y in February, while the oil index declined 1.6%. On a monthly basis, non-oil activities increased 1.5%, and oil activities inched up 0.3%.

IN CONTEXT- Non-oil activity continued to expand in February, with the headline PMI easing to 58.4 from January’s decade-high of 60.5 as new business growth cooled slightly.

Utilities were on the up: The sub-index for electricity, gas, steam, and air conditioning supply activity grew 1.1% y-o-y (up 5.8% m-o-m), while that for water supply, sewage, and waste management and remediation activities grew 13.1% y-o-y (down 0.8% m-o-m).

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