Non-energy private sector growth strengthens in April

Doha, Qatar: Qatar s non energy private sector recorded a stronger improvement in business conditions in April, according to the latest Purchasing Man...

Doha, Qatar: Qatar’s non-energy private sector recorded a stronger improvement in business conditions in April, according to 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 increased at faster rates than in March, and the 12-month outlook brightened. Price pressures turned slightly negative, as both input and output prices fell marginally.

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 52.0 in April, up from 50.6 in March. The latest figure rose further above the no-change mark of 50.0 and signalled the strongest improvement in business conditions in the non-energy private sector economy since last September.

The 1.4-point increase in the headline figure was among the largest registered over the past two years and took it broadly in line with the long-run survey trend level of 52.2 since April 2017. Four of the five components of the PMI - new orders, output, employment and stocks of purchases - made positive contributions in April. As has been the case for the past two years, shorter suppliers’ delivery times weighed slightly on the headline figure.