Qatar's industrial sector witnessed decline in the earnings within the hydrocarbons and manufacturing sectors, leading its PPI (producers' price index) to shrink 6.6% year-on-year in December 2019, according to official statistics.
Qatar's PPI – a measure of the average selling prices received by the domestic producers for their output – however saw a 3.1% month-on-month increase, said the figures released by the Planning and Statistics Authority (PSA).
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%, plummeted 7.5% on a yearly basis as the index of crude petroleum and natural gas declined 7.5% and that of stone, sand and clay 0.7% during the review period.
However, the PPI for mining registered a 3.1% jump month-on-month in December last year on the back of a 3.1% increase in the price of crude petroleum and natural gas and 0.1% in stone, sand and clay.
The manufacturing sector, which has a weight of 26.8% in the PPI basket, witnessed a 4.7% yearly shrinkage in December 2019 on a 12.5% fall in the price of basic metals, 7.5% in basic chemicals, 3% in refined petroleum products, 2.6% in cement and other non-metallic mineral products, 0.2% in other chemical products and fibres and 0.1% in dairy products.
Nevertheless, there was a 3.6% increase in the price of paper and paper products, 3.2% in juices, 1.8% in beverages and 1.6% in rubber and plastics products.
The manufacturing sector PPI had seen a monthly a 2.8% rise in December 2019 as the price of basic chemicals had risen 8.3%, paper products 1% and beverages 0.6%; whereas that of basic metals was down 2.3%, and grain mill and rubber and plastics products (0.2% each).
The utilities group, which has a 0.5% bearing on the PPI basket, saw its index expand 3.9% on yearly basis last December as electricity and water prices rose 3% and 5% respectively.
The index had seen a higher 9.7% surge month-on-month in December 2019 with electricity prices and water prices soaring 13.4% and 4.7% respectively.
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