Qatar’s non-energy private sector shows continued growth last month

(MENAFN) At the beginning of the second half of 2024, Qatar’s non-energy private sector demonstrated continued growth, as indicated by the latest Purchasing Managers’ Index (PMI®) survey data from Qatar Financial Centre (QFC) compiled by S&P Global. The PMI reflects the performance of the non-energy sector through responses from approximately 450 private sector companies spanning manufacturing, construction, wholesale, retail, and services. The survey shows that output and new orders increased at robust rates, consistent with their long-term trends, and company confidence regarding the 12-month outlook improved.

Firms made notable progress in addressing outstanding business, with backlogs decreasing significantly, marking the largest drop since January 2023. Cost pressures remained relatively subdued as the rise in purchase prices was partially counterbalanced by reduced staff costs. The data reveals that the non-energy sector’s expansion was solid, with the PMI standing at 51.3 in July, a decrease from June’s 23-month high of 55.9 but still indicating an overall enhancement in business conditions.

The July PMI figure, while slightly below the long-run trend level of 52.3 since April 2017, reflects a strengthening in demand within Qatar’s non-energy economy. The number of new orders grew for the seventeenth time in 18 months, continuing at a solid rate aligned with the long-term survey trend. This suggests a sustained positive momentum in business activity, despite the slight decline in the PMI.

Overall, the Qatar PMI indices are derived from various indicators, including new orders, output, employment, suppliers’ delivery times, and stocks of purchases, offering a comprehensive snapshot of the non-energy private sector’s performance. Despite the decrease from June’s high, the PMI’s level of 51.3 underscores ongoing improvements in the non-energy sector’s business environment.

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