Qatar's non-energy firms' employment rose at fastest rate since June 2022: QFC

Doha's non-energy private sector signalled "strong and stable” expansion in September with solid increases in output and new orders as employment rose at the fastest rate since June 2022, according to Qatar Financial Centre (QFC).The 12-month outlook for the non-energy private sector improved in September. Expectations were strongest among manufacturers and construction firms, said the QFC's latest purchasing managers’ index (PMI) survey data.The PMI posted 53.7 in September, little-changed from 53.9 in August and indicating another strong improvement in business conditions. The latest figure was above the average for 2023 so far (53) and the long-run trend since 2017 (52.4). The PMI has remained in a narrow range of 53.7-55.6 since March, indicating "stable, solid" economic growth.The headline QFC 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 indices are compiled from survey responses from a panel of around 450 private sector companies. It covers the manufacturing, construction, wholesale, retail, and services sectors, reflecting the structure of the non-energy economy according to official national accounts data."The Qatar PMI continued its steady run in September, coming in at 53.7 and indicating another strong improvement in business conditions. Growth over the third quarter as a whole softened slightly compared with the second quarter, but remained comfortably above the long-run trend of the survey’s six-and-a-half year history," said Yousuf Mohamed al-Jaida, chief executive officer, QFC Authority.New business increased for the eighth successive month in September, and the growth rate stabilised at a strong pace. Construction provided a notable boost to demand during the month.Total business activity among Qatari non-energy private sector firms rose further. Output has risen every month for more than three years, except for a brief correction in January following the conclusion of the FIFA World Cup Qatar 2022. The latest rate of expansion was softer than in each of the prior four months, but still stronger than the long-run average."The soft patch in the PMI immediately following the FIFA World Cup in early-2023 was recently corroborated by the latest GDP figures, where annual growth slowed to 2.7% in the first quarter. The PMI is signaling a subsequent uplift to GDP growth in the second and third quarters,” al-Jaida said.Non-oil private sector employment expanded for the seventh month running in September, and at the fastest rate since June 2022. Companies reported efforts to gain experienced, highly qualified employees. Three of the four main monitored sectors registered solid increases in staffing, as did financial services.Purchasing of inputs expanded for the seventh consecutive month in September, but supply chains continued to improve as average lead times fell for the seventeenth successive month, a series-record sequence. Input inventories were broadly stable, as companies continued to manage stock levels efficiently.Total financial services activity and new business both increased at marked rates, albeit ones that eased slightly since August, while the 12-month outlook improved, the QFC said, adding September data signalled lower charges levied by finance companies in Qatar, the third instance of discounting in four months. Average input costs fell marginally.