Qatar’s non-oil private sector saw expansion in February

How Qatar’s non-oil private sector performed in February: Qatar’s Purchasing manager Index (PMI), tracking performance in the country’s non-energy private sector, registered strong growth in business conditions in February, according to Qatar Financial Center’s PMI (pdf). The headline number tracked at 51.0 in February, inching up from 50.4 in January, and placing it above the 50.0 threshold separating contraction from growth. Output, new orders, and employment all saw m-o-m growth, buoying the headline figure, while a decline in input stocks partially offset growth, the report said.

Robust demand for goods and services continued to strengthen in February, with firms attributing new orders to branch openings and new customers. Nonetheless the rate of growth of new orders was slower than previous months, enabling firms to work through backlogs. Output and employment also grew at faster rates, with employment seeing a 12-months growth streak. “Companies are taking on staff at the fastest rate in five months, with financial services registering the strongest job creation,” QFC Authority CEO Yousuf Mohamed Al-Jaida said in his comment to the report.

Purchases of inputs proceeded to decline, as firms continued to trim inventories, alleviating pressure on supply chains and shortening lead times for the twenty-second consecutive month. Despite price pressures being subdued overall, higher wage and purchase costs saw an uptick in average input prices. Output prices fell for their fourth consecutive month, and at their fastest rate since February 2022, the report explained.

Qatari businesses were upbeat about the next 12 months, with overall sentiment at its highest since last September. Firms cited business development plans, fresh clients, and marketing campaigns as driving a boosted outlook for the coming year, the report said.

ICYMI- The UAE and Saudi Arabia’s non-oil private sectors saw improvements due to new business activity in February, on the back of robust demand, with the UAE’s headline reading inching up to 57.1 from 56.6 in January, and KSA ramping up to 57.2 in February from 55.4 the previous month. Egypts PMI dropped to 47.1 in February, down from 48.1 the previous month. Lebanon also saw a dip in its headline figure in February, as security concerns weighed the reading down to 49.1, from 49.4 in January.