Industrial output climbs in September on higher oil production

The Industrial Production Index (IPI) increased 9.3% y-o-y in September, according to preliminary data (pdf) from the General Authority for Statistics. The growth was buoyed by higher oil output during the month following the accelerated unwinding of Opec+ production cuts.

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Mining and quarrying activities — representing 61.4% of the total index weight — went up 11% y-o-y during the month, with the Kingdom’s oil output rising to 9.97 mn bbl / d, compared to 8.97 mn bbl / d in the same month last year.

Manufacturing also saw a 6.3% y-o-y increase, thanks to a 9.2% expansion in the manufacturing of chemical products and 6% y-o-y growth in the manufacture of petroleum coke and refined petroleum products. Meanwhile, the sub-index of electricity, gas, steam, and air conditioning supply logged 12.6% y-o-y growth, while the sub-index of water supply, sewerage, waste management, and remediation activities rose 9.2%.

MEANWHILE- The oil activities index climbed 10.1% y-o-y in September, the highest rate since January 2024, while the non-oil activities index posted a 7.3% y-o-y increase.

REMEMBER- The Kingdom’s non-oil private sector expanded at its fastest rate in six months in September, hitting 57.8. The reading is still shy of January’s peak of 60.5.