Industrial production inches up in July, with manufacturing the fastest-growing sector

The Kingdom’s Industrial Production Index (IPI) rose 6.5% y-o-y in July, supported by growth across the manufacturing, mining and quarrying, and utilities sectors, according to data (pdf) from the General Authority for Statistics.

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Manufacturing was the fastest-growing sector during the month, rising 7% y-o-y on the back of 13.8% y-o-y growth in the manufacture of petroleum coke and refined petroleum products and an 8.9% y-o-y increase in the manufacture of chemical products.

Mining and quarrying activity saw a 6.5% y-o-y increase, with the Kingdom’s oil output rising to 9.53 mn bbl / d, up from 8.94 mn bbl / d in the same month last year.

Utilities were no slouch either: The sub-index of water supply, sewerage, waste management, and remediation activities rose 8.5% y-o-y, while the sub-index of electricity, gas, steam, and air conditioning supply activity bumped up 0.9% y-o-y.

MEANWHILE- The oil activities index jumped 7.8% y-o-y in July, and the non-oil activities index posted a 3.5% y-o-y increase.

REMEMBER- Saudi Arabia’s non-oil business activity expanded at a slower pace in July, with the Riyad Bank PMI falling to 56.3 from June’s three-month high of 57.2. While overall growth was supported by higher output and new orders, the pace of expansion in both areas softened during the month.