The producer price index (PPI) for Qatar's industrial sector saw a robust 5% month-on-month increase in October 2020, mainly lifted by higher average selling prices, especially for hydrocarbons and certain manufactured products as refined petroleum products, basic metals and paper products, according to the Planning and Statistics Authority (PSA).
Qatar's PPI — a measure of the average selling prices received by the domestic producers for their output — however, saw a 25.7% year-on-year fall, 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%, reported a 5.8% growth on a monthly basis in October 2020 as the selling price of crude petroleum and natural gas shot up 5.8%; while that of stone, sand and clay was down 0.5%.
The PPI for mining registered 30.7% shrinkage on a yearly basis in October this year on the back of a 30.8% slump in the selling price of crude petroleum and natural gas and 8.1% in stone, sand and clay.
The manufacturing sector, which has a weight of 26.8% in the PPI basket, witnessed a 3.7% increase month-on-month in October this year on 5.9% jump in the selling price of refined petroleum products, 5.4% in basic metals, 1% in paper and paper products, 0.5% in juices, 0.3% in dairy products and 0.1% in beverages.
Nevertheless, there was a 3.3% decline in the selling price of other chemical products and fibers, 1.7% each in basic chemicals and cement and other non-metallic mineral products and 0.5% in grain mill and other products.
The manufacturing sector PPI had seen a yearly 15.3% contraction in October 2020 as the selling price of refined petroleum products plummeted 19.6%, basic chemicals (16.6%), other chemical products and fibers (6.9%), rubber and plastics products (4.9%), cement and other non-metallic mineral products (4.1%), dairy products (1.9%), beverages (0.5%) and grain mill and other products (0.4%).
However, there was a 7% jump in the selling price of basic metals and 5% each in juices and paper and paper products.
The utilities group, which has a mere 0.5% weightage in the PPI basket, saw its index zoom 9% on monthly basis as electricity and water selling prices had risen 6.1% and 12.3% respectively in October 2020.
The index had seen a 5.3% expansion year-on-year this October with electricity and water indices gaining 5.1% and 5.7% respectively.