The most recent PMI™ survey of Qatari non-hydrocarbon private sector businesses highlighted a further rise in the volume of new business at the beginning of 2019's second quarter. Meanwhile, overall sentiment regarding future output was the third-strongest since the survey began in April 2017, with more than three-quarters of respondents expecting growth at their business units over the next 12 months. As a consequence, while the level of the headline PMI figure ebbed slightly from March's reading, sustained growth in such new work orders supported firms' robust expectations for future total business activity.

The headline Purchasing Managers' Index™ (PMI) for Qatar eased slightly to 48.9 in April, from 50.1 in March. Although the most recent reading continues to register above its average over the final quarter of 2018 (48.6), it is just below the trend observed over the first quarter of 2019 (49.7). The month-on-month dip in the PMI mainly reflects the slower growth rate of new orders and declines in the output as well as employment indicators.

Comment

• "The headline PMI edged lower in April but remains indicative of overall growth in the Qatari economy, and at a faster rate than the mediocre performance seen at the end of 2018.
• "Although the PMI does not directly monitor the energy sector, it correlates strongly with total quarterly gross domestic product (GDP) since the survey began in April 2017, and accurately signalled the weak growth in GDP during Q4 of just 0.3% on an annual basis."
• "The PMI subsequently improved to 49.7 over the first quarter, which is pointing to a faster annual increase in GDP at the start of 2019. This points to further sustained expansion of the non-oil economy over the coming year."
  
  
  

  Sheikha Alanoud bint Hamad Al-Thani

  Managing Director, Business Development
  Qatar Financial Centre