Qatar’s non-energy private sector sees ‘all-round improvement’ in August – PMI

Qatar’s non-energy private sector signalled “an all-round improvement” in business conditions in August 2024, as per the latest Purchasing Managers’ Index (PMI) survey from Qatar Financial Centre (QFC) and S&P Global. The PMI rose to 53.1, up from July’s 51.3, surpassing the long-term average of 52.3, driven by strong job growth and a surge in new orders.

Employment in the sector experienced significant gains, with the growth rate nearly matching the record set in January 2019. However, this increase in jobs contributed to record wage pressures, leading to the highest overall cost inflation in four years, despite a slight decline in charges for goods and services.

The data also showed robust expansion in new orders, which outperformed the long-term trend, further boosting total activity. Confidence in the year-ahead outlook improved significantly, reaching its highest level since March 2023, supported by government policies, increased tourism, and a growing expatriate population.

The survey further highlighted that while companies continued to reduce backlogs, the pace of this reduction slowed. Despite a rise in purchasing activity, suppliers’ delivery times improved, and input stocks fell at the fastest rate since November 2022. The statement came during the release of the survey on 3 September 2024.

Attribution: Qatar Financial Centre PMI

Subediting: Y.Yasser