The industrial production index measures relative changes and reflects the development in the volume of production of materials and commodities. Industrial production means the process of converting raw materials (inputs) into consumables in their final form in the form of commodities (outputs) in order to achieve a material, return for the facility.

1. Mining sector: which includes oil and gas extraction, with a relative weight of 82.46%.

2. Manufacturing sector: which are produced locally, such as food industries, petroleum refining, iron and steel industries, and petrochemicals. And other industries, with a weight of 15.85%.

3. Electricity Sector: which includes electricity generation, transmission, and distribution of electric power, with a weight of 1.16%.

4. Water sector: which includes water collection, treatment, and delivery, with a weight of 0.53%.

Each main activity is disaggregated into sub-groups classified according to the international classification (CPC.ver.2.1)). The index of industrial production is calculated using the Laspeyre formula for indices, which is the well-known mathematical formula in the statistics field, that calculates the index using levels of values weighted by the weights of the base period. The base year has been changed by adopting the base year of 2018, and the weights (importance) have been calculated by using the production values of industrial products in that year. This report is considered the third quarterly release during year of 2023.

The sectors that make up the index also recorded several changes compared to the previous quarter, as the mining and quarrying sector index reached 104.39 points, up by 1.2% from the previous quarter, the manufacturing industry index scored 105.19 points, up by 1.7%, and the electricity supply sector index reached 150.29 points, an increase of 35.2%, while the index for the water supply sector recorded 109.54 points, an increase of 4.9%.

The general index in the third quarter of 2023 reached 105.08 points, increased by 1.7% when compared with the previous quarter (Q2-2023). This happened as a result of the changes in production in the main sectors:

A. Mining sector:

The index for this sector indicated an increase of 1.2% compared to the previous quarter (Q2-2023), as a result of the increase in the “extraction of crude oil and natural gas” group by the same percentage mentioned above, other mining and quarrying recorded a decrease of 3.6%.

B. Manufacturing sector:

The index of this sector, which includes eight sub-groups, indicates an increase of 1.7% compared to the previous quarter (Q2-2023), due to the increase in six groups and a decrease in two.

The groups showed an increase include: “Manufacture of basic metals” by 28.8%, followed by “Manufacture of beverages” by 8.5%, “Manufacture of Coke and refined petroleum products” by 7.2%, “Printing and reproduction of recorded media”, and “Manufacture of rubber and plastics products” by 4.0% each, and “Manufacture of chemicals and chemical products” by 1.3%. However, a decrease was recorded in “Manufacture of Cement and Other non-metallic mineral products” by 7.5%, and “Manufacture of food products" by 3.6%.

C. Electricity supply sector:

The index of this sector recorded an increase of 35.2% in the third quarter of 2023, compared to the previous quarter (Q2-2023), and since the relative weight of this sector is very small, there was no noticeable impact on the general index.

D. Water supply sector:

The index of  this sector recorded an increase of 4.9% in the third quarter of 2023, compared to the previous quarter (Q2-2023), and due to the fact that the relative weight of this sector is very small, there was no noticeable impact on the general index.

The index increased in the third quarter of 2023 by 0.8%, compared to the corresponding quarter of 2022, and this was due to the changes that occurred in the production of the main sectors.

1. Mining sector:

This sector is considered one of the most important reasons affecting the trend of the general index, given that its relative weight represents 83.61% of the total basket making up the industrial production index. Where the index for this sector indicates an increase of 1.1% compared to the corresponding quarter (Q3-2022), because of the increase in the “extraction of crude oil and natural gas” group by the same percentage, and (other mining and quarrying) decreased by 1.6%.

2. Manufacturing sector:

The index of this sector, which includes eight sub-groups, indicates a decrease of 1.6% compared to the corresponding quarter (Q3-2022), due to the decrease in six groups and the increase in two. The groups that recorded a decrease are: “Manufacture of cement and other non-metallic mineral products” by 12.6%, followed by “Manufacture of Coke and Refined petroleum products” by 7.3%, “Manufacture of rubber and plastics products” by 5.8%, “Printing and reproduction of recorded media” by 2.5%, “Manufacture of chemicals and chemical products.” by 1.4%, and “Manufacture of food products” by 0.8%. However, an increase was recorded in: “Manufacture of basic metals” by 57.6%, and “Manufacture of beverages” by 5.6%. 

 

3.   Electricity supply sector:

The index of this sector recorded an increase of 7.6% in the third quarter of 2023, compared to the corresponding quarter (Q3 - 2022), and due to the fact that the relative weight of this sector is very small, there was no noticeable impact on the general index.

4. Water supply sector:

The index of this sector recorded an increase of 1.4% in the third quarter of 2023, compared to the corresponding quarter (Q3 - 2022), and due to the fact that the relative weight of this sector is very small, there was no noticeable impact on the general index.

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