Doha's non-energy private sector economy continued to expand in September as coronavirus-related restrictions were lifted further, according to the Qatar Financial Center (QFC).
The output and new business continued to register growth as firms reported operations returning to normality, following the lockdown, and the reopening of industrial areas, said the QFC’s latest Purchasing Managers’ Index (PMI) compiled by IHS Markit.
The topline PMI registered 51.4 in September, down from 57.3 the previous month of this year. The latest figure signalled sustained improvement in business conditions in the non-energy private sector segment of the economy and was the third-highest figure in over two years.
"The PMI survey data for the third quarter are signalling a strong rebound of the Qatari economy as lockdown measures introduced to fight Covid-19 have been loosened moving through the second half of 2020," said Sheikha Alanoud bint Hamad al-Thani, managing director (Business Development), QFC Authority.
At the sub-sector level, the strongest-performing area in the third quarter was wholesale and retail (58.4), followed by construction (57.7), manufacturing (57.6) and services (52.1).
The monthly PMI can be aggregated to a quarterly average to enable comparisons with the official gross domestic product (GDP).
Since the survey began in April 2017, the quarterly PMI has a correlation of 0.88 with the yearly percentage change in GDP in real terms, with a PMI reading of 50 equating to 1% growth on an annual basis. The latest official data reported annual growth of 0.9% in the first quarter.
"The recent trends in the data are consistent with a decline in GDP of 4.6% in the second quarter, followed by a strong rebound of 4.3% in the third quarter," Sheikha Alanoud said.
Since the beginning of the survey, the PMI has trended at 49.5. By contrast, over the third quarter of 2020, the PMI averaged at a more elevated 56.2 levels. This was by far the highest quarterly average to date, compared with the next-highest figure of 53.5 set in the fourth quarter of 2017.
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 economic conditions continued to register strong expansion, albeit at a more moderate pace, the survey said.
The month-on-month growth rates for output and new business both eased further in September following record expansions in July, but the respective indices remained among the highest on record. The new orders index was the joint-third highest to date.
The employment index rose to a six-month high in September and was running in line with its long-run average, indicating a stable trend in workforces.
It said firms also supported workloads by increasing their purchasing activity further, though this was insufficient to prevent a decline in input inventories.
The topline PMI registered 51.4 in September, down from 57.3 the previous month of this year. The latest figure signalled sustained improvement in business conditions in the non-energy private sector segment of the economy and was the third-highest figure in over two years.
"The PMI survey data for the third quarter are signalling a strong rebound of the Qatari economy as lockdown measures introduced to fight Covid-19 have been loosened moving through the second half of 2020," said Sheikha Alanoud bint Hamad al-Thani, managing director (Business Development), QFC Authority.
At the sub-sector level, the strongest-performing area in the third quarter was wholesale and retail (58.4), followed by construction (57.7), manufacturing (57.6) and services (52.1).
The monthly PMI can be aggregated to a quarterly average to enable comparisons with the official gross domestic product (GDP).
Since the survey began in April 2017, the quarterly PMI has a correlation of 0.88 with the yearly percentage change in GDP in real terms, with a PMI reading of 50 equating to 1% growth on an annual basis. The latest official data reported annual growth of 0.9% in the first quarter.
"The recent trends in the data are consistent with a decline in GDP of 4.6% in the second quarter, followed by a strong rebound of 4.3% in the third quarter," Sheikha Alanoud said.
Since the beginning of the survey, the PMI has trended at 49.5. By contrast, over the third quarter of 2020, the PMI averaged at a more elevated 56.2 levels. This was by far the highest quarterly average to date, compared with the next-highest figure of 53.5 set in the fourth quarter of 2017.
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 economic conditions continued to register strong expansion, albeit at a more moderate pace, the survey said.
The month-on-month growth rates for output and new business both eased further in September following record expansions in July, but the respective indices remained among the highest on record. The new orders index was the joint-third highest to date.
The employment index rose to a six-month high in September and was running in line with its long-run average, indicating a stable trend in workforces.
It said firms also supported workloads by increasing their purchasing activity further, though this was insufficient to prevent a decline in input inventories.