Qatar non-energy sector activity slowdown eased in February

Investing.com – According to the latest S&P Global Purchasing Managers’ Index data released on Wednesday, Qatar’s non-energy private sector activity in February saw a slight decline, marking the third consecutive month of decrease.

The S&P Global Qatar PMI rose from 50.4 in January to 50.6 in February, indicating an overall improvement in business conditions. However, this reading remains below the long-term average of 52.1 since 2017.

The overall improvement in business conditions was supported by higher employment levels, offsetting declines in output, new orders, and procurement inventories, as well as shorter supplier delivery times.

New orders fell for the eighth time in the past nine months, leading to a third consecutive decline in output. The rate of decline slowed compared to January and was only slight.

Despite ongoing decreases in output and new orders, the 12-month business outlook improved to its highest in six months. Companies attributed their optimistic expectations to stronger market demand, planned business expansion, new projects, and increased production capacity.

Employment continued to expand at a notable pace in February, rebounding from a nine-month low in January. Higher staffing levels were related to capacity expansion and sales support.

Unfinished work in the non-energy private sector increased for the 15th consecutive month in February, with the fastest growth in four months.

Qatar companies raised wages significantly in February, with inflation reaching its highest in seven months. Cost pressures from non-labor inputs intensified, with overall input prices rising at the fastest pace since December 2024. In response, selling prices increased for the first time in five months.

Demand for inputs declined, and procurement activity in Qatar decreased at the fastest rate since December 2022. This led to a second reduction in procurement inventories over the past three months.

Supply chain conditions continued to improve in February, with moderate shortening of input delivery times. Companies cited logistics improvements, better supplier terms and relationships, increased supplier competition, and ample raw material supplies.

The S&P Global Qatar PMI is compiled based on survey responses from approximately 450 purchasing managers in the non-energy private sector. Data collection took place from February 10 to February 20.

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