Qatar’s non-energy sector shows modest growth in September

Investing.com -- Qatar’s non-energy private sector maintained growth momentum in September, with the S&P Global Qatar Purchasing Managers’ Index (PMI) registering 51.5, slightly down from 51.9 in August but still indicating expansion.

The September reading helped the third quarter average reach 51.6, making it the strongest quarter of 2025 so far, outpacing both the first quarter (51.1) and second quarter (51.2), according to data collected between September 11-23.

Output in the non-energy private sector rose modestly in September, marking the fourth expansion in six months. However, new orders declined slightly for the fourth consecutive month, despite strong growth in manufacturing orders.

Employment continued to show robust growth, with companies expanding teams across sales, marketing, operations and management departments. All four monitored sectors reported sharp workforce increases, with manufacturing leading the way.

"Qatar’s non-energy private sector continued to report an overall improvement in business conditions in September," said Trevor Balchin, Economics Director at S&P Global Market Intelligence. "The overall improvement in business conditions was underpinned by growth of employment, output and inventories."

Wage inflation remained among the highest in the survey’s history, while purchase prices rose at the fastest rate in four months. Notably, prices charged for goods and services increased for the first time since July 2024, albeit slightly.

Supply chains showed improvement with lead times quickening more than in August. Input orders and inventories both increased during the month.

The 12-month business outlook remained positive but moderated from August. Companies cited strength in real estate, rising expatriate population, marketing initiatives, investment, and economic development as factors supporting their optimistic outlook.

The Qatar PMI is compiled from responses of approximately 450 private sector companies across various non-energy sectors.

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