Saudi industrial production rises 4.3% month-on-month in June despite 16.3% annual decline

According to the Saudi Gazette, citing preliminary data from the General Authority for Statistics (GASTAT), Saudi Arabia’s Industrial Production Index (IPI) experienced a 4.3 percent increase on a month-on-month basis in June 2026. This growth occurred despite a reported 16.3 percent decline compared to the same period in the previous year.

The monthly recovery was driven by gains across several key sectors. Mining and quarrying activities rose by 5.1 percent, while the manufacturing sector saw a 1.8 percent increase. Within the manufacturing segment, the production of coke and refined petroleum products grew by 3.1 percent, and the chemical products sector recorded a 1.7 percent rise. Additionally, the food products industry emerged as a strong performer, leading the manufacturing sub-sectors with a 4.1 percent monthly increase.

Infrastructure-related sectors also contributed to the positive monthly momentum. Electricity, gas, steam, and air-conditioning supply recorded a significant 25.4 percent increase, while water supply, sewerage, and waste management activities rose by 3.9 percent. These figures reflect the ongoing fluctuations in the Kingdom's industrial output as it navigates broader economic shifts.

On an annual basis, however, the data highlights a more challenging environment. Mining and quarrying fell by 27 percent compared to June 2025, and manufacturing activity saw a 2.3 percent decline. These annual figures underscore the volatility currently impacting the industrial landscape, even as monthly metrics show signs of localized expansion.