Qatar's industrial sector saw decline in earnings within hydrocarbons and manufacturing sectors, leading its producers' price index (PPI) shrink 3.2% year-on-year in January 2020, according to the official statistics.
Qatar's PPI – a measure of the average selling prices received by the domestic producers for their output – was down 0.8% month-on-month, according to 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%, tanked 3.7% on a yearly basis as the index of crude petroleum and natural gas declined 3.7% and that of stone, sand and clay 3% during the review period.
The PPI for mining registered a 0.7% dip month-on-month this January on the back of a 0.7% fall in the price of crude petroleum and natural gas and 2.2% in stone, sand and clay.
The manufacturing sector, which has a weight of 26.8% in the PPI basket, witnessed a 1.9% yearly shrinkage in January 2020 on an 11.4% decline in the price of basic metals, 7% in basic chemicals and 2.8% in cement and other non-metallic mineral products.
Nevertheless, there was a 3.9% increase in the price of juices, 2% in paper and paper products, 1.9% in other chemical products and fibres, 1.3% in rubber and plastics products, 1.2% in refined petroleum products, and 0.3% each in beverages, dairy products and grain mill and other products.
The manufacturing sector PPI had seen a monthly 1% fall in January 2020 as the price of basic chemicals had fallen 1.8%, beverages 1.6%, refined petroleum products 1.4%, rubber and plastics products 1.2% and cement and other non-metallic mineral products 0.6%; even as there was a 2.8% surge in the price of basic metals, 2.1% in other chemical products and fibres, 0.5% in juices, 0.2% in grain mill and other products and 0.1% in dairy products.
The utilities group, which has a 0.5% weight in the PPI basket, saw its index expand 6.2% on yearly basis this January as electricity and water prices had risen 5.1% and 7.7% respectively.
The index had seen a 2.7% increase month-on-month in January 2020 with electricity prices and water prices gaining 4.1% and 0.6% respectively.
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