In September 2025, Qatar’s non-energy private sector extended its growth momentum, marking the strongest quarter of the year so far. Data from S&P Global showed the Purchasing Managers’ Index (PMI) eased slightly to 51.5 from 51.9 in August, but it stayed comfortably above the 50.0 expansion threshold.
Across the third quarter, the average PMI stood at 51.6, exceeding 51.1 in the first quarter and 51.2 in the second. The reading signals consistent economic activity and a stable operating environment for non-oil businesses.
Output levels across manufacturing, services, and construction sectors rose modestly. Companies also maintained employment growth, adding new roles in operations, sales, and management. This expansion reflects growing confidence in market stability.
However, new orders declined for the fourth consecutive month, as some firms reported reduced customer demand. Despite this slowdown, inventories increased, and supply chain efficiency improved, suggesting businesses are preparing for potential demand recovery.
Rising costs remain a challenge. Wage inflation persisted, while input prices grew at the fastest pace in four months, increasing pressure on margins. Businesses cited higher transport and material costs as key contributors.
Despite these headwinds, business sentiment stayed positive, supported by stronger real estate activity, a rising expatriate population, and ongoing development projects. Firms expect marketing campaigns and infrastructure growth to sustain demand in the near term.
Still, several businesses showed caution in hiring, given uncertainties in order volumes.
Overall, Qatar’s non-energy economy remains on a resilient path, with steady output, employment, and confidence, even as cost pressures and softening orders present short-term hurdles.
