Saudi industrial production index slides 22% in June

The IPI dropped by 7.1% in June 2020 when compared to the previous month

  
Image used for illustrative purpose. Workers are seen at the solar plant factory in Uyayna, north of Riyadh, Saudi Arabia April 10, 2018.

Image used for illustrative purpose. Workers are seen at the solar plant factory in Uyayna, north of Riyadh, Saudi Arabia April 10, 2018.

REUTERS/Faisal Al Nasser

Riyadh –  The Saudi industrial production index (IPI) fell by 22.4% on a yearly basis in June 2020, according to the monthly report of the General Authority for Statistics (GaStat).

The drop is mainly attributed to a 23.2% decline in mining and quarrying production activity, including oil production, as the kingdom has cut its oil output to 7.5 million barrels per day (b/d) in June from 9.8 million b/d in June of 2019.

Meanwhile, manufacturing activities tumbled by 22.3% yearly in June, as many factories reduced production operations due to the COVID-19 pandemic.

Moreover, non-oil manufacturing activity plunged by 22.3% annually in June 2020, the machinery and equipment production slid by 45.5%, the clothing production fell by 43.7% while the electrical equipment production slumped by 43.3%. In contrast, the manufacturing of beverages increased in volume by 0.2%.

The IPI is an economic indicator that reflects the relative changes of the volume of industrial output.

Month-on-month (MoM), the IPI dropped by 7.1% in June 2020 when compared to May 2020.

Source: Mubasher

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