The latest data from the Qatar Financial Center Purchasing Managers Index study at the end of the second quarter of this year showed a record improvement in the commercial activity of Qatari private sector non-energy related companies.
The Purchasing Managers ‘Index recorded a level of 67.5 points last June, as there was no change in the index’s reading compared to the previous month of May, with the improvement of commercial activity in the private sector for the second month in’ n ry.
Reading the PMI revealed a record high growth rate of the manufacturing index, new orders, purchase offers and the accumulation of unfinished business, and the level of demand continued to rise, supporting job creation and encouraging Qatari companies to increase their buffer stocks.
The latest PMI data showed that the components of new orders and production, with a total weight of 55 percent of the index, contributed to the rise of the index for the month of June, as the growth rate of the production index to a new record level, while new orders rose at a slight rate in June compared to May. From the same year, she pointed to the improvement in commercial conditions and the great demand, which is attributed to the impending date of the organization of the FIFA World Cup Qatar 2022, notes the continued positive expectations for the growth of the production index during the next 12 months.
The level of confidence of Qatari companies also improved in June 2022, reaching its highest level in four months, with wholesale and retail companies providing particularly positive expectations.
In the same context, the rise in the production index and the continuous growth in new orders supported the increase in the number of employees last June, which recorded the fourth highest rate since the start of the study in April 2017. At the same time, the unfinished business has increased significantly, with sustained pressure on the production capabilities of companies.
With respect to purchasing activities in June 2022, a growth in purchasing activities was observed over the past two years, and inventory of production inputs showed the second fastest rate of increase in the history of the study after the increase recorded last May, and the average cost of production inputs increased again, and at a higher rate.
In terms of prices, total prices of production inputs increased at a moderate pace in June 2022, while the rate of selling price inflation increased to the highest level in 6 months in view of the increase in demand, and average purchasing prices moderately has risen. in the same month of this year, and accordingly prices rose Selling non-energy related Qatari private sector goods and services at the highest rate in four months. High demand has helped Qatari companies raise the prices of their goods and services at the fourth highest rate in the history of the study, which began five years ago.
The latest PMI data indicated that the financial services sector in Qatar recorded new growth in commercial activity thanks to the record increase in new orders, which recorded the second highest rate in the history of the study in June 2022, which led to an increase in financial services prices to the highest level since October 2017., which positively reflected the improvement in profit, and with the continued momentum of positive expectations over the next 12 months, financial services companies increased the number of employees for the tenth consecutive month.
Commenting on these data, Youssef Mohamed Al-Jaida, CEO of the Qatar Financial Center Authority, said: “The data from the latest PMI study for Qatar showed an improvement in the commercial activity of the non-energy-related Qatari private sector. indicated, and the PMI recorded a record reading for the second consecutive month thanks to the rise in The level of significant demand and growth in the manufacturing index.
He added, the unfinished business of Qatari private sector non-energy companies has recorded a sharp increase, and expects production levels to continue to grow in the coming months.
He pointed out that Qatari companies have contracted with more employees to implement plans to expand the scope of their business and take advantage of the appropriate commercial conditions, and efforts to increase inventory indicate Qatari companies’ preparations until the second half of 2022.
He noted that Qatari companies had seen a rise in input prices at relatively low rates as pressure on the purchase prices of production inputs was weak compared to the historical average, and they were trying to increase their profits by increase the selling prices of their goods. and services, by taking advantage of the improvement in demand conditions.
It is noteworthy that the PMIs for Qatar were compiled from responses to the study by a committee of about 450 private sector companies. This committee covers several areas, including manufacturing, construction, retail and wholesale, as well as services. It also reflects the structure of the non-energy economy, according to official national accounts data.
The QFC Core Purchasing Managers’ Index is a single-digit composite index that shows the performance of non-energy private sector companies in Qatar. This indicator is calculated based on indicators of new orders, production, employment, delivery dates of suppliers and stock of purchases.
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