Industrial production up 2% y-o-y in March

The industrial production index (IPI) rose 2% y-o-y in March, continuing its growth trajectory supported by an increase in manufacturing activity and water supply, sewage, and waste management, according to preliminary data (pdf) by the General Authority for Statistics (Gastat).

The main drivers: The increase in the IPI was largely due to a 5.1% rise in manufacturing activity, despite a slight 0.2% dip in mining and quarrying.

The mining and quarrying activity sub-index decreased by 0.2% y-o-y during the month, due to a marginal slowdown in oil production to 8.96 mn barrels per day (bbl/d), down from 8.97 mn bbl/d in March 2024.

The manufacturing sub-index was up 5.1% y-o-y, primarily driven by growth in the manufacturing of chemical products (14.3%) and food products (6.9%).

MEANWHILE- The non-oil activities index rose 5.6% y-o-y in March, while the oil activities index increased by 0.5%.

IN CONTEXT- Non-oil business activity in the Kingdom slowed its expansion slightly in March. The seasonally adjusted headline figure came in at 58.1 in March, dipping down from February’s reading of 58.4, as new business growth continued to increase, albeit at its slowest rate since October 2024.

Utilities showed mixed performance: The sub-index for electricity, gas, steam, and air conditioning supply activity decreased 0.9% on an annual basis (down 7.7% m-o-m), while the sub-index for water supply, sewerage, and waste management and remediation activities increased by 15% y-o-y (up 3.7% m-o-m).