In February 2024, Saudi Arabia’s Industrial Production Index (IPI) saw a 1 percent monthly increase driven by an uptick in mining, industrial production and manufacturing activity. According to the General Authority for Statistics (GASTAT), Saudi Arabia’s IPI saw a 7.7 percent decline compared to February 2023 due to the annual decline in mining and quarrying activity.
Industrial activity
IPI for February 2024 revealed a monthly increase of 0.6 percent in mining and quarrying activity. However, the sector saw a 13.8 percent annual decline due to the decrease in oil production to 9 million barrels per day in February 2024.
Meanwhile, data revealed a 2.1 percent increase in manufacturing activity due to an increase in the manufacturing of non-metallic products, basic metals, and paper and paper products, which increased by 5 percent, 17.1 percent, and 9.3 percent, respectively. On the other hand, the manufacturing of coke and refined petroleum products saw an annual decline of 0.4 percent. Manufacturing of chemicals and chemical products also declined by 1 percent.
Compared to January 2024, Saudi Arabia’s manufacturing activity saw a 1.2 percent increase. According to the IPI, Saudi Arabia witnessed a monthly rise in coke and refined petroleum products manufacturing. Moreover, both the manufacturing of chemicals and chemical products and the manufacturing of food products increased by 0.9 percent and 1.4 percent, respectively.
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Energy, water, and waste management
Saudi Arabia’s IPI also sheds light on growth trends in the energy, water, and waste management sectors. The report reveals a 7.7 percent annual increase in electricity, gas, steam, and air conditioning supply. Moreover, it recorded an 8.5 percent annual increase in water supply, sewerage, waste management, and remediation activities. However, due to the low weight of these sectors on the IPI, they did not have a significant impact on the overall result for February 2024.
Month-on-month, the sub-index for electricity, gas, steam, and air conditioning supply increased by 7.6 percent. Meanwhile, the sub-index for water supply, sewerage, waste management, and remediation activities increased by 2.1 percent.
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