Saudi industrial production growth slows in July as manufacturing contracts

RIYADH: Saudi Arabian industrial production grew at a slower pace in July as a decline in manufacturing activity partially offset a surge in oil output.

The Saudi Industrial Production Index (IPI) rose by 5.9 percent year on year in July, compared with 11.9 percent in June, official data revealed today. The increase was driven by an 11.8 percent year-on-year increase in mining and quarrying, which includes oil and gas production and has a 74.5 percent weighting in the index.

Saudi Arabia increased its oil production from 8.4 million barrels per day in July 2020 to 9.4 million barrels per day in July 2021, GASTAT said in its release.

By contrast, non-oil manufacturing contracted 9.2 percent in July from a year earlier following a 4.2 percent annual decline in June, GASTAT said.

IPI rose 4.3 percent in July from the previous month as mining and quarrying activity increased 6.1 percent. Non-oil manufacturing fell 2.3 percent from June, while electricity and gas supply increased 7.9 percent.

Electricity and gas supply activity, which has the lowest weighting in the index at just 2.9 percent, decreased 6.8 percent year on year, GASTAT said.