In February, Saudi Arabia’s Industrial Production Index (IPI) saw a 1 percent increase compared to the previous month, primarily fueled by heightened manufacturing activities. The General Authority for Statistics reported a 1.2 percent month-on-month rise in the manufacturing sub-index during that period.
This uptick in manufacturing was supported by a 0.4 percent increase in the production of coke and refined petroleum products. Additionally, mining and quarrying activity saw a slight 0.6 percent month-on-month increase, while electricity, gas, steam, and air conditioning supply surged by 7.6 percent during the same period. Water supply, sewerage, waste management, and remediation activities also rose by 2.1 percent month-on-month.
The IPI, calculated from production surveys, serves as an economic indicator reflecting changes in industrial output. However, compared to February of the previous year, Saudi Arabia's IPI decreased by 7.7 percent due to a significant drop in mining and quarrying activity.
The decline in mining and quarrying was primarily due to Saudi Arabia's decision to reduce crude oil production in alignment with OPEC+ agreements, resulting in a 13.8 percent decrease in this sector's sub-index.
Despite this, manufacturing activities showed resilience, posting a 2.1 percent increase year-on-year, especially in non-metallic products production. Similarly, electricity, gas, steam, and air conditioning activities, along with water supply and waste management, saw annual increases of 7.7 percent and 8.5 percent, respectively. However, their lower weights in the index meant they had a limited impact overall.
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