Qatar non-energy private sector expansion tempers in August

Qatar non-energy private sector expansion tempers in August

Qatar - Non-energy private sector in Qatar tempered in August, although output and new orders rose sharply, according to the latest Purchasing Managers’ Index (PMI) survey data from Qatar Financial Centre (QFC).

The rates of expansion in total activity, new work and purchasing activity all eased from those seen in July but were still strong by historical standards. At the same time, a renewed reduction in backlogs allowed firms to cut their headcounts and subsequently protect profit margins.

In fact, overall input price inflation rose only slightly during the month, but strong demand allowed firms to hike their charges at the quickest rate in eight months during August.

450 private sector companies

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 53.7 in August, down from 61.5 in July, the latest PMI signalled softer, yet solid business conditions