Qatar's non-oil economy is firing on all cylinders, with June marking a two-year high in private sector growth. According to the latest Purchasing Managers' Index (PMI) data compiled by Qatar Financial Centre (QFC), the non-energy sector witnessed a significant expansion in activity.
The PMI for June reached 55. 9, a notable increase from 53. 6 in May. This figure signifies the strongest improvement in business conditions since July 2022 and surpasses the long-term average of 52. 3 recorded since April 2017. The report further highlights that June's reading is the highest for non-pandemic months, trailing only October 2017 (56. 3).
This positive momentum is driven by a surge in new business. Companies across various sectors reported a significant rise in incoming work orders, indicating a healthy level of customer demand. The report attributes this growth to factors like increased customer numbers, promotional activities, and heightened client confidence in Qatari products and services.
The positive sentiment extends to employment as well. Businesses in Qatar's non-oil sector have maintained a trend of expanding their workforce for the 15th consecutive month. This sustained job creation indicates optimism within the private sector and bodes well for the overall Qatari economy.
The growth hasn't translated into significant inflationary pressures, offering some relief. While input prices experienced a slight increase compared to May, they remained relatively stable. Additionally, companies haven't raised prices for their goods and services, suggesting a focus on maintaining competitiveness in a dynamic market.
Looking ahead, businesses remain optimistic about the future. The 12-month outlook for the non-energy sector is the strongest since July 2023, with companies anticipating continued growth and expansion. This confidence is likely fueled by the robust performance in the first half of 2024, where the PMI has risen five times, reflecting a consistent upward trajectory.
Qatar's non-oil economy appears to be on a promising path. The robust growth witnessed in June, coupled with positive outlooks for the future, suggests a thriving private sector poised to contribute significantly to the nation's overall economic well-being.