Qatar's Non-Energy Private Sector Sees Robust Growth in April: PMI Report

Qatar, 8 May, 2024 : In April, Qatar's non-energy private sector displayed notable improvement in business conditions, as per the latest Purchasing Managers’ Index (PMI) survey data from Qatar Financial Centre (QFC) compiled by S&P Global. Output, new orders, employment, and purchasing activity all saw accelerated growth compared to March, while the 12-month outlook improved. Price pressures were slightly negative, with both input and output prices experiencing marginal declines.

The PMI data is gathered from a panel of approximately 450 private sector companies covering manufacturing, construction, wholesale, retail, and services sectors, reflecting the structure of the non-energy economy based on official national accounts data.

The headline Qatar Financial Centre PMI, a composite indicator of non-energy private sector performance, rose to 52.0 in April from 50.6 in March, indicating the strongest improvement in business conditions since September last year.

Four out of five components of the PMI contributed positively in April, with new orders, output, employment, and stocks of purchases all showing growth. However, shorter suppliers’ delivery times, consistent over the past two years, weighed slightly on the headline figure.

Yousuf Mohamed Al Jaida, CEO of QFC Authority, noted the significant increase in April's PMI, marking the strongest growth in the non-energy private sector since September. Output, new orders, and employment all showed improvement, with a positive outlook for the next 12 months. Financial services notably performed well, experiencing stronger gains than the wider economy.

The report also indicated weak inflationary pressures, with both input prices and charges slightly decreasing.

In April, new business in Qatar's non-energy economy expanded at the quickest rate in seven months, driven by new customers and competitive products. Total activity increased notably since September, attributed to new projects and ongoing work completion.

Optimism among non-energy private sector firms for growth over the next year increased, fueled by marketing efforts, business plans, and efficiency enhancements. Hiring growth accelerated, surpassing the long-run survey average, while purchasing activity saw its fastest rate of increase in ten months.

While price pressures decreased in April, both input prices and charges experienced marginal declines.

Qatari financial services companies exhibited faster growth in business activity and new contracts in April, with optimism for the year ahead reaching its highest level since November. Employment growth extended for the 13th consecutive month, albeit with a decline in average charges and relatively stable input prices.

Source : www.zawya.com