Qatar: Non-energy sector growth accelerates in Feb

PHOTO

Doha: Qatar’s non-energy private sector recorded a stronger improvement in business conditions in February, according to the latest Purchasing Managers’ Index (PMI) survey data from Qatar Financial Centre (QFC) compiled by S&P Global. Output and employment both increased at faster rates, and new business growth was maintained. Companies were also able to make progress on volumes of outstanding work during the month, and the 12-month outlook improved. The Qatar PMI indices are compiled from survey responses from a panel of around 450 private sector companies. The panel covers the 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 registered 51.0 in February, up from 50.4 in January. The latest figure moved further above the no-change mark of 50.0 and thereby signalled a faster improvement in business conditions in the non-energy private sector economy.

Of the five components of the headline figure, output, new orders and employment all registered above 50.0 index readings in February, indicative of month-on-month expansions. These were partly offset by shorter suppliers’ delivery times and a reduction in input stocks.

Demand for goods and services in Qatar’s non-energy economy continued to expand in February. Companies widely linked new orders to new customers and branch openings. The rate of growth eased since January, enabling a reduction in the volume of outstanding business. Total activity increased at the fastest rate in three months in February, although growth remained below the strong average for 2023.

Yousuf Mohamed Al Jaida, CEO, QFC Authority said, “The PMI rose further in February, reflecting sharper gains in output and employment in the Qatari non-energy economy. So far in 2024 the headline index is trending in line with the average for the fourth quarter of 2023, indicating sustained economic growth.

“Although new orders did not rise by as much as in January, the 12-month outlook brightened with firms at their most confident since last September. Companies are taking on staff at the fastest rate in five months, with financial services registering the strongest job creation. The sector also posted faster new business expansion in February, bucking the wider trend.”