The latest data of the Purchasing Managers’ Index study issued by the Qatar Financial Center showed continued growth in the activity of non-energy-related private sector companies in Qatar in the middle of this year, especially in the second quarter, as the Purchasing Managers’ Index averaged 54.6 points, which is its best performance since Third quarter of 2022.
The data of the study, whose indicators are compiled from responses to survey questions received from a committee of about 450 companies from the private sector, indicated high growth rates in indicators of production, new orders, employment and purchasing activities, and that the expectations of commercial activity for the next twelve months remained positive, while Backlogs decreased thanks to improved supply chains.
It showed that the PMI dropped from 55.6 points in May to 53.8 points in June 2023, while the PMI averaged 54.6 points during the second quarter of 2023, which is the best performance of the index since the third quarter of 2022 (when the average index reached 55.3 points). ), and that period witnessed the preparations for the organization of the FIFA World Cup Qatar 2022. The latest PMI reading remained above the long-term index level at 52.3 points.
The study said: The reading of the purchasing managers’ index in June 2023 relied mainly on the indicators of production and new orders, while the indicators of employment and purchasing activities had positive contributions.
New orders witnessed strong growth in June 2023, and Qatari companies linked the rise in new orders to the recovery of the tourism sector, competitive prices, increased marketing activities and a good reputation for the business sector among customers. The growth rate of new orders decreased in June, compared to May 2023, but it was among the fastest rates. registered over the past year, the growth rate of new orders in the financial services sector accelerated to its highest level in ten months.
The total commercial activity recorded new growth in June 2023, and the production index increased to complete its monthly growth series for more than three years, with the exception of the decline recorded after the conclusion of the FIFA World Cup Qatar 2022, and despite the decline in the growth rate of commercial activity compared to May 2023, it was the second highest rate. enrolled in 2023 so far, significantly higher than the average of the study that began six years ago.
The expectations of private sector companies not related to energy in Qatar for the next twelve months remained positive, and this is related to the implementation of new projects, corporate development plans and marketing campaigns. Most companies from various sectors provided positive expectations for commercial activity for the next twelve months, especially the manufacturing and services sectors.
Non-energy private sector companies intensified recruitment activities in June 2023, which helped reduce the amount of unfinished business. Suppliers’ delivery times continued to improve despite the high demand for production requirements again, and supplier performance improved to its highest level since the beginning of 2023 until now.
Prices of production inputs increased in June 2023 in line with the observed trend from the beginning of 2023 to date, and the rate of inflation of production prices remained slightly above the long-term study average. In contrast, selling prices of goods and services decreased for the fourth time in six months, and at their fastest pace since February 2022.
While financial services companies in Qatar continued to record significant growth in mid-2023, and the growth rate of new business in the financial services sector increased in June 2023, which led to another rapid rise in overall activity, financial services companies’ expectations remained positive regarding business activity during the second year. The next ten months, companies also intensified their purchasing activities.
New business rose in June, thus completing its current growth chain for more than three years. The growth rate in business in June 2023 was the highest since August 2022, and much higher than the long-term study average. Overall activity in financial services companies rose for the twenty-fourth month on consecutively and at a relatively strong pace. At the same time, business activity expectations over the next twelve months remained positive, and financial services companies intensified recruitment activities.
June 2023 data indicated a reduction in financial services prices for the first time in seven months, and this was coupled with a decline in the prices of production inputs.
Commenting on this, Mr. Yousef Mohamed Al-Jaida, CEO of the Qatar Financial Center Authority, said: “Although the PMI declined to 53.8 points in June 2023, the index recorded a stronger performance in the second quarter at 54.6 points, compared to the first three months of 2023. The growth rates of the indicators of commercial activity and new orders remained high and much higher than the average of the study that began six years ago, and Qatari companies attributed this again to the recovery of the tourism sector, competitive prices, and the implementation of new marketing activities.
He added: “The financial services sector continued to grow sharply, with its main indicators recording commercial activity and new business of 60.0 points and 63.4 points, respectively. The cost faced by Qatari companies has been able to reduce the prices of their goods and services to achieve new sales and retain key customers.
The main purchasing managers’ index of the Qatar Financial Center is a single-digit composite index that indicates the performance of non-energy private sector companies in Qatar.
PMI studies now cover more than 40 major countries and regions including the Eurozone, PMIs have become the most followed studies in the world and are a favorite of central banks, financial markets and business decision makers This is due to its ability to provide up-to-date, accurate and distinctive monthly indicators of economic patterns.
