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Saudi industrial production index slides 22% in June

Saudi industrial production index slides 22% in June
The IPI dropped by 7.1% in June 2020 when compared to the previous month

Riyadh – Mubasher: 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.