Jordan’s Industrial Output Barely Rises in First Half of 2026 as Producer Prices Stay Higher on the Year
Jordan’s industrial production index rose by 0.04 percent in the first half of 2026 compared with the same period a year earlier, the Department of Statistics said Wednesday, a reading so narrow that it points to an economy where growth and contraction are close to cancelling out. The same round of releases showed producer prices still well above their year earlier level, even after a pullback in June from May.
Industrial Production Nearly Flat for the Half
The Industrial Production Index rose 0.04 percent in the first half of 2026 against the first half of 2025, the Department of Statistics reported. On a yearly basis, June 2026 alone fell 1.34 percent against June 2025, and on a monthly basis June was down 0.50 percent against May 2026.
Producer Prices Still Up on the Year, Down on the Month
The Producer Price Index rose 5.27 percent in June 2026 against June 2025, even as it fell 1.15 percent against May 2026 on a monthly basis. Measured across the first half of 2026 against the first half of 2025, the index was up 1.75 percent. The Department of Statistics said the monthly decline reflected a 0.57 percent fall in manufacturing producer prices, which carry a weight of 88.74 percent in the overall index, and an 11.48 percent drop in mining and quarrying prices, weighted at 5.36 percent, partly offset by a 0.03 percent rise in electricity prices, weighted at 5.91 percent.
| Indicator | First half 2026 (year on year) | June 2026 (year on year) | June 2026 (month on month) |
|---|---|---|---|
| Industrial Production Index | +0.04% | -1.34% | -0.50% |
| Producer Price Index | +1.75% | +5.27% | -1.15% |
Industrial production had already been up 0.10 percent year on year in the first five months of 2026, the Department of Statistics reported in July. On our calculation, June’s 1.34 percent annual decline was therefore enough on its own to pull the first half cumulative reading down to just 0.04 percent.
On our calculation, treating the first half cumulative producer price reading as a simple average of the six monthly year on year rates, a first half figure of 1.75 percent alongside June’s own 5.27 percent implies the other five months of the half averaged only around 1.05 percent year on year, since 5 multiplied by 1.05 percent plus 5.27 percent divided by 6 comes to approximately 1.75 percent. On that basis June’s year on year reading ran well above the pace set earlier in the half, even though the index itself eased 1.15 percent from May to June. This is our own approximation from the two published cumulative and monthly figures, not a month by month series the Department has published, and it should be read as an order of magnitude rather than a precise monthly path.
Why it matters
For Jordan’s economy, a first half industrial reading this close to flat points to weak momentum in physical output. Producer prices, which measure what industrial firms receive for their own output rather than what they pay for inputs, remained 5.27 percent above their year earlier level even after June’s monthly easing, indicating that factory gate price pressure has not gone away. Whether that feeds through to consumer prices will depend on margins, demand conditions and the composition of price movements in the months ahead.
Outlook
The Department of Statistics publishes both indices monthly. The next release will show whether June’s industrial pullback and the monthly easing in producer prices mark the start of a trend or a one month swing.
Sources: Jordan Department of Statistics.
