RIYADH: Saudi Arabia’s Industrial Production Index rose by 0.8 percent in September compared to August, primarily driven by a slight increase in mining and quarrying activities, official data showed.
According to the data released by the General Authority for Statistics, mining and quarrying activities registered a monthly increase of 0.6 percent in September.
The manufacturing sector and electricity and gas supplies industries increased by 1 percent each during the same period.
The report, however, added that the Kingdom’s IPI decreased by 11 percent in September compared to the same month last year.
“Although the activity of the manufacturing industry and the activity of electricity and gas supply continued to rise, the decline in the mining and quarrying activity led to the decrease in the general index, given its high weight in the index,” said GASTAT in the report.
GASTAT added that mining and quarrying activities decreased by 18.7 percent in September, compared to the same month of the previous year, as the Kingdom decreased its oil output, aligned with the decision of the Organization of the Petroleum Exporting Countries.
“Relative weights of the mining and quarrying, manufacturing, and electricity and gas supply sectors in the IPI are 74.5 percent, 22.6 percent, and 2.9 percent, respectively. Thus, the industrial production index in the mining and quarrying sector dominates the trend in the general IPI,” added GASTAT.
In April, Saudi Arabia decided to reduce oil output by 500,000 barrels per day to maintain market stability, which is now extended until the end of December 2024.
In July, the Kingdom also pledged an additional oil output cut of 1 million bpd. Earlier this month, the Ministry of Energy announced that this additional cut will be continued until the end of December.
In a statement issued, the Ministry of Energy added that the additional voluntary cut reinforces the precautionary efforts made by OPEC+ countries to support the stability of oil markets.
According to the GASTAT report, manufacturing activity in Saudi Arabia increased by 6.7 percent in September 2023, compared to the same month last year, while electricity and gas supplies surged by 26.5 percent during the same period.