The latest data of the Purchasing Managers Index study issued by the Qatar Financial Center revealed an increase in the growth momentum in the activity of private sector companies not related to energy in Qatar during May 2023. The growth rates in the indicators of production, new orders, employment and purchasing activities accelerated since April 2023, and the expectations of the twelve business activity improved. next month.
Yousef Mohamed Al Jaidah, Chief Executive Officer of the Qatar Financial Center Authority, said: “Non-energy private sector companies in Qatar maintained an upward growth trajectory in May 2023 with an increase in new business flow driven by improved demand for tourism and financial services.
He added that the production index (59.6 points) and the new orders index (60.1 points) had a positive contribution to the rise in the main PMI reading to its highest level in ten months at 55.6 points, which is higher than the long-term study average of 52.3 points that began in 2017. .
Al-Jaida said that the performance of the financial services sector exceeded the rest of the components of the private sector economy once again, with its main indicators of commercial activity and new business recording 61.4 points and 61.8 points, respectively. Likewise, financial companies raised the prices of their services compared to a slight change in the prices of non-energy private sector goods and services.
The increase in the PMI was mainly attributed to the rise in the production and new orders indices in May 2023, and the employment and purchases stock indices had a positive impact on the latest reading of the index.
New business increased at the fastest rate in ten months in May 2023. Qatari companies cited the reasons for the increase as the signing of new contracts with existing and new customers, the introduction of new products, and improved tourism demand. An increase in new business in the financial services sector was one of the strengths of the recent results recorded by the index.
The expectations of non-energy private sector companies improved for the next 12 months in May 2023. The future production index rose in May for the first time in three months to 59.2 points, with the level of confidence rising in the services, wholesale and retail, and construction sectors.
Employment in non-energy private sector companies rose to the highest level since July 2022, which helped them reduce the volume of unfinished business in May 2023. The level of demand for production inputs has improved, but supply chains have coped amazingly due to the reduction in delivery times of suppliers again.
Data for May 2023 indicated rising pressures on non-staff costs and average purchase prices rising at the fastest rate since June 2021.
New business in the financial services sector grew, extending the current growth streak to three years. The growth rate of new business was also the highest since August 2022 and higher than the study’s long-term average.
