Doha: The latest Purchasing Managers' Index (PMI) survey data from Qatar Financial Centre (QFC) compiled by S and P Global signaled stronger growth in business conditions in Qatar's non-energy private sector in October. Demand for goods and services increased at a faster rate, leading to growth in total activity and the greatest build-up of outstanding business in over two years. The 12-month outlook for activity remained stronger than the long-run survey trend. Companies continued to invest in staff by increasing both employment and wages at rates close to September's respective series records. According to Qatar News Agency, overall cost inflation was the highest in over four years, but competitive pressures led to another fall in prices charged. 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 rose to 52.8 in October, from 51.7 in September, signaling stronger overall growth in business conditions in the non-energy private sector economy. The rise in the headline figure in October took it back above the long-run survey average of 52.3, which dates back to April 2017. The rise in the PMI since September mainly reflected a faster increase in new business, which in turn generated a renewed expansion in overall business activity. Inflows of new business expanded for the tenth month running, linked to successful marketing, service enhancements, population growth, and client satisfaction. Outstanding business increased for the second month running, and at the fastest rate since June 2022. October data signaled continued inve stment in staff in order to boost capacity. Over the past two months, non-energy employment has risen more quickly than at any other time in the survey history. Service providers, in particular, raised staffing levels at a rapid rate. Wage inflation in the non-energy sector remained close to September's record level in October. The seasonally adjusted Staff Costs Index was the second highest on record. Companies reported boosting salaries to retain experienced and skilled staff in a highly competitive market. Overall cost pressures were the highest since July 2020. In contrast, prices charged for goods and services fell for the third month running as firms competed for business.
Non-Energy Private Sector Growth Strengthens in October.
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