The latest figures released by Qatar’s Planning and Statistics Authority (PSA) suggest that nation’s industrial sector witnessed a healthy 7.6% month-on-month increase in producer price index (PPI) during the month of June supported by robust expansion in the earnings of hydrocarbons and certain manufactured products.
However, Qatar’s PPI, a measure of the average selling prices received by the domestic producers for their output saw a substantial 40.7% year-on-year plunge.
The PSA had released a new PPI series in late 2015. With a base of 2013, it draws on an updated sampling frame and new weights. The previous sampling frame dates from 2006 when the Qatari economy was much smaller than today and the range of products made domestically much narrower.
The mining PPI, which carries the maximum weight of 72.7%, reported an 8.8% growth on a monthly basis in June 2020 as the price of crude petroleum and natural gas shot up 8.8%; while that of stone, sand and clay was down 1.1%.
The PPI for mining registered 47.9% shrinkage on a yearly basis in June this year on the back of a 48% slump in the price of crude petroleum and natural gas and 5.3% in stone, sand and clay.
The manufacturing sector, which has a weight of 26.8% in the PPI basket, witnessed a 6.4% increase month-on-month in June this year on 13.8% surge in the price of refined petroleum products, 2.5%in juices, 1.2% in dairy products, 0.9% in cement and other non-metallic mineral products and 0.6% in grain mill and other products.
Nevertheless, there was a 3.6% dip in the price of basic metals, 2.8% in rubber and plastics products, 2.5% in basic chemicals, 2.1% in other chemical products and fibres and 0.7% in beverages.
The manufacturing sector PPI had seen a yearly 26.9% contraction in June 2020 as the price of refined petroleum products plummeted 33.9%, basic chemicals (21.6%), rubber and plastics products (12.9%), basic metals (8.3%), other chemical products and fibers (3.4%) and beverages (1.4%).
However, there was a 5.1% jump in the price of juices, 2.7% in dairy products, 2% in paper and paper products, 1.9% in cement and other non-metallic mineral products and 1% in grain mill and other products.
The utilities group, which has a mere 0.5% weightage in the PPI basket, saw its index shrink 6% on yearly basis in June this year as electricity prices had fallen 13.3%; even as that of water grew 3%.
The index had seen a 1.9% dip month-on-month this June with electricity index dropping 9.7%; even as that of water expanded 7.8%.