Doha: The latest Purchasing Managers’ Index (PMI) survey data from the Qatar Financial Center (QFC) show a record improvement in operating conditions for the non-energy economy, closing the second quarter of 2022. rice field. While high, new orders, purchases, and backlogs increased at record rates. Strong demand continued to support job creation, but companies began to increase their stockpiles.
Looking at prices, overall input costs rose moderately in June, but selling price inflation surged to its highest level in six months amid strong demand.
Yousuf Mohamed Al Jaida, Chief Executive Officer of QFC Authority, said: PMI hit a record high for the second straight month, supported by strong demand and production growth.
“Furthermore, the level of good business of a company has risen sharply, suggesting that its activities will continue to expand over the next few months. At the same time, companies will further expand their business and take advantage of good trading conditions. In the plan, we increased the number of employees. The stockpiling effort also suggests that the company is preparing for the second half of this year.
“On the other hand, companies have less pressure on purchase prices than historical averages and relatively low inflation rates on input costs. The same company is profitable by raising selling prices in strong demand conditions. I tried to improve. “
Qatar’s PMI index is compiled from survey responses from a panel of approximately 450 private companies. The panel covers manufacturing, construction, wholesale, retail and service industries and reflects the structure of the non-energy economy according to official national accounts data.
The headline Qatar Financial Center PMI is a complex single-digit indicator of the performance of the non-energy private sector. This is derived from indicators of new orders, production volumes, employment, supplier deadlines, and purchased inventory.
The June PMI remained unchanged at 67.5, setting the second consecutive year of record for Qatar’s non-oil sector overall business conditions.
The latest PMI measurements were driven by a new order and output component with a weight of 55% in the heading diagram. Output growth surged to high levels in the new series, with new businesses increasing significantly, but at a slightly slower pace than we saw in May.
Companies have linked growth to healthy trading conditions and also cited strong demand from the upcoming FIFA World Cup. Since then, Qatar’s non-energy companies have been convinced that production will continue to grow over the next 12 months. Sentiment was the strongest in four months, with wholesale and retailers particularly optimistic.
The number of employees in June increased further due to increased production and sustained increases in new orders. Growth was slower than in May, but overall it was strong, the fourth strongest in survey history. In the meantime, the backlog has increased significantly, suggesting that capacity pressure continues.
Purchasing activity increased in June, and purchasing activity has been observed over the last two years. Inputs have increased at the second fastest pace ever, only surpassing those seen in May. On the other hand, inventory input increased at a slower and faster pace than in May.
The average purchase price in June rose slightly. Nevertheless, the selling prices imposed by Qatar’s non-energy companies rose at the fastest pace in four months. Strong demand has allowed businesses to raise fees at the fourth highest rate in the five-year history of research.
June data for Qatar’s financial services sector show another significant increase in business activity. Growth has slowed slightly from record highs in May, but was the second fastest since the series began in 2017.
The influx of new businesses into financial services companies increased further in June. Growth was the second strongest in the series, with only May recording a faster increase in the survey history. Expectations for activities over the next 12 months remain positive, and the workforce has expanded for the 10th consecutive month.
The average input cost has risen further and has risen at a faster rate. On the other hand, fees charged on financial services have risen the most since October 2017, indicating an improvement in profitability.