DOHA, QATAR – Qatar’s non-energy private sector continued to experience improving business conditions at the start of the final quarter of 2023, according to the latest Purchasing Managers’ Index™ (PMI®) survey data from Qatar Financial Center (QFC).
Output, new orders and employment all expanded in October, and the 12-month outlook remained upbeat.
Moreover, profitability improved as firms raised their prices for goods and services at the fastest rate since February while average input prices fell for the first time in the year so far, a press release said.
The Qatar PMI indices are compiled from survey responses from a panel of around 450 private sector companies.
The panel covers manufacturing, construction, wholesale, retail and services sectors and reflects the structure of the non-energy economy according to official national accounts data.
The headline Qatar Financial Centre PMI is a composite single-figure indicator of non-energy private sector performance.
It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.
The PMI posted 50.8 in October, from 53.7 in September, but the overall growth has been maintained since February, although the headline figure dipped below its long-run average (52.3, since 2017) in the latest period, the release added.
Total business activity among Qatari non-energy private sector firms rose further in October, with firms often reporting higher customer numbers.
Output has risen every month since July 2020, except for a brief correction in January following the conclusion of the FIFA World Cup Qatar 2022™.
The overall rate of expansion was the softest in 2023 so far, but construction continued to post a solid rebound in activity.
New business increased for the ninth successive month in October, with strong demand at wholesalers and retailers in particular.
The overall rate of expansion eased since September, however.
Non-oil private sector employment expanded for the eighth month running in October. Recruitment was driven by construction firms and manufacturers, who also held the strongest 12-month outlooks for activity in October.
Supply chains continued to improve in October, as lead times for inputs shortened for the eighteenth consecutive month.