• Stability recorded in IPI of Mining sector
• 4.5% monthly increase in IPI of manufacturing sector.
• 39.8% annual increase in IPI of Manufacture of food products
Ministry of Development Planning and Statistics (MDPS), has issued a press release for July 2017 of industrial production index to study and analyze the economic level of the state. This index details out the growth of various industrial sectors in an economy such as “Mining”, “Manufacturing”, “Electricity production and “Water production and desalination”. It is a short-term quantitative index that measures the changes in the volume of production of a selected basket of industrial products over a given period with respect to that in a chosen period called the base period.
The Industrial Production Index consists of three main components: mining with a relative importance of 83.6%, manufacturing with a relative importance of 15.2%, electricity with a relative importance of 0.7%, and finally water with a relative importance of 0.5%.
The Industrial Production index (IPI), for July 2017 amounted to 104.1 points, increase by 0.8% compared to the previous month (June-2017), and a decrease by 2.4%, when compared to the corresponding month of 2016. Graph (1) illustrates the time series of the IPI and monthly rates of change since July of 2016 until July of 2017. Table (1) shows the monthly and annual comparison of the Industrial Production Index for July, 2017.
The analysis of the monthly IPI of the above activities is as follows:
1. “Mining”: The index of this sector showed no change compared to the previous month (June of 2017), as a result of the stability in the quantities of crude oil and natural gas produced, and an increase in "Other mining and quarrying" by 3.1%. When compared to the corresponding month of the previous year ( July 2016, the IPI of Mining decline by 3.4%. Graphs (2) explain the trends of monthly change in the mining sector during July, 2016 until July of 2017.
2. “Manufacturing”: A picking up of 4.5% is recorded in July 2017 compared to the previous month (June-2017), and that was due to the increase in production of seven groups: “Manufacture of Beverages” by 16.5%, “Manufacture of basic metals” by 12.6%, “Manufacture of food products” by 9.8%, “Manufacture of Cement & other non-metallic mineral products” by 6.1%,“Manufacture of refined petroleum products” by 5.3%, “Manufacture of chemicals and chemical products” by 3.4%, “Manufacture of Rubber and plastic products” by 2.8%. However a decline recorded in one group: "Printing and reproduction of recorded media" by 7.8% Graph (3) illustrates the trend of IPI of manufacturing sector during July of 2016 until July of 2017.
On the other hand, in terms of annual change, comparing to July 2016, an increase of 2.7% was recorded affected by the following groups: “Manufacture of food products” by 39.8%, “Manufacture of refined petroleum products” by 25.3%,“Manufacture of chemicals and chemical products” by 0.9%. However a decline recorded in, "Printing and reproduction of recorded media" by 11.4%,“Manufacture of basic metals” by11.2%, “Manufacture of Cement & other non-metallic mineral products” by 5%,“Manufacture of Rubber and plastic products” by 4.8%,“Manufacture of Beverages” by 3.4% .
3. “Electricity”: an increase by 14.1% in the production of “Electricity” group between July 2017 and the previous month (June-2017), while the annual increase ( a comparison between July- 2017 and July- 2016), was a 3.7%.
4. “Water” : When comparing July 2017 with the previous month, a rise of 1.5% was noticed. However, when July 2017 with the corresponding month of the previous year, a decrease of 6.9%. was recorded. The Graph (3) shows IPI of: “Electricity” and “Water supply” activities during July of 2016 until July of 2017.
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