A substantial decline in the earnings within the hydrocarbons and manufacturing sectors led Qatar's PPI (producers' price index) shrink 14% year-on-year in November 2019, according to the official statistics.
Qatar's PPI — a measure of the average selling prices received by the domestic producers for their output — however, saw a 4.5% 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 14% on a yearly basis as price of crude petroleum and natural gas plunged 14.2% and that of stone, sand and clay 0.7% during the review period.
However, the PPI for mining registered a 6.3% surge month-on-month in November this year on the back of a 6.3% increase in the price of crude petroleum and natural gas, even as that of stone, sand and clay was flat.
The manufacturing sector, which has a weight of 26.8% in the PPI basket, witnessed a 14.2% yearly shrinkage this November on a 17.5% contraction in the price of basic chemicals, 14.4% in refined petroleum products, 12.5% in basic metals, cement and other non-metallic mineral products (2%), other chemical products and fibres (0.2%) and grain mill and other products (0.1%).
Nevertheless, there was a 3.2% jump in the price of juices, 2.6% in paper and paper products, 0.7% in rubber and plastics products, 0.6% in beverages and 0.2% in dairy products.
The manufacturing sector PPI had seen a monthly 1% rise in November 2019 as the price of refined petroleum products grew 3%, and juices and grain mill products (0.1% each); whereas that of basic metals declined 4.5%, basic chemicals 2.3%, dairy products 1.6%, beverages 1%, and cement and other non-metallic mineral products 0.3%.
The utilities group, which has a mere 0.5% weightage in the PPI basket, saw its index expand 1% on yearly basis in November this year as electricity and water prices had risen 0.4% and 2% respectively.
The index had seen a 5% surge month-on-month this November with electricity prices shooting up 15.6%; while there was a 5.8% fall in the price of water.