Doha: The latest Purchasing Managers’ Index (PMI) survey data from Qatar Financial Centre and IHS Markit has indicated a sustained strong upturn in the non-energy private sector economy at the start of 2021. Output as well as new business both rose at elevated rates, and following sustained elevated demand, employment increased for a survey-record fifth successive month. Supply chains remained stable despite a ramping up of purchasing activity, and firms were also able to keep on top of levels of outstanding business during the month. Expectations regarding output over the next 12 months continued to be positive. As a further indication of businesses adjusting to healthy demand, firms raised their prices charged for goods and services at one of the fastest rates since the survey began in April 2017.
“The non-energy private sector of Qatar continued its strong start to 2021 in February. Although the PMI corrected slightly since January, the latest figure of 53.2 was still the fifth-highest since the survey was first compiled in April 2017. The three main components of the PMI remained strong, with further marked expansions in output and new business supporting a record run of continuous employment growth. Manufacturing and construction in particular are performing strongly. Recent PMI data suggest that the non-energy economy is now recovering well and will support a rebound in the official GDP numbers,” said Sheikha Alanoud bint Hamad Al Thani (pictured), Managing Director of Business Development at QFC Authority.
The Qatar PMI indices are compiled from survey responses from a panel of around 400 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 PMI registered 53.2 in February, slightly down from 53.9 in January. The latest figure signalled continued strong non-energy business conditions, and was the fifth-highest level ever registered by the survey, below the peaks seen last July (59.8) and August (57.3) when the economy rebounded rapidly from the first wave of COVID-19, and lower than that recorded in October 2017 (56.3) when domestic production boomed after inducement generated by the blockade. In comparison, since the series began in April 2017 the PMI has trended at 49.8, registering current performance well above the norm. Data for this January and February are signalling the strongest quarterly performance since the fourth quarter of 2017.
The five components of the headline PMI all had positive overall contributions in February. The strongest influences came from new orders and output, although both sub-indices corrected slightly since January. Meanwhile, employment, suppliers’ delivery times and stocks of purchases all had slightly positive directional influences in February compared to January.
Subsector data revealed that manufacturing was the strongest performer in February, with its PMI reaching a six-month high, followed by construction, wholesale & retail and services respectively. Non-energy firms boosted capacity in February with a further round of job creation and purchasing growth.
