Monday 28 November 2022

Qatar non-oil private sector growth continues in September

DOHA, October 5, 2022

The latest Purchasing Managers’ Index (PMI) survey data from Qatar Financial Centre (QFC) has continued to indicate growth in the non-oil private sector at the end of the third quarter. 
The rate of expansion in total activity gained momentum with output rising markedly in September. New orders fell for the first time in 27 months, however, while back-to-back contractions were seen in employment and inventories. 
Nevertheless, the fast-approaching Fifa World Cup supported optimism with sentiment improving to a 12-month high, it said. 
On the price front, a fall in purchase costs contrasted with higher wage expenses, leading to only a marginal increase in overall input prices. Meanwhile, firms sought to boost profits by hiking their selling prices at a near-record rate. 
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. 
At 50.7 in September, down from 53.7 in August the latest PMI pointed to a softer improvement in business conditions in Qatar's non-energy sector. 
Central to the moderation was a renewed decline in new orders. The fall was broad-based with all monitored sectors registering lower sales, led by construction. Panel comments indicated that client projects were placed on hold due to the upcoming World Cup, it said. 
Despite weaker demand, firms sought to boost their output in September. Business activity increased for the 27th month running with the latest uptick marked. Moreover, the rate of output growth was quicker than the long-run series average amid expectations of greater activity in the coming months. 
Firms continued purchasing inputs at the end of the quarter, albeit at a softer pace. Inventory holdings meanwhile fell fractionally.  -TradeArabia News Service


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