New orders, output signal 'record' improvement in Qatar non-oil economy: QFC
July 06 2022 08:08 PM
Yousuf Mohamed al-Jaida, chief executive officer, QFC
QFC Authority chief executive Yousuf Mohamed al-Jaida

Driven by new orders and output components, Qatar's non-oil economy signalled a second successive record improvement on an annualised basis in June 2022, as staffing levels continue to expand solidly, according to the Qatar Financial Centre (QFC).
The headline QFC PMI – which is a composite single-figure indicator of non-energy private sector performance and derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases – signalled a second successive record in overall business conditions in Qatar's non-oil sector, it said.
The latest reading of the PMI was driven by new orders and output components, which together have a weight of 55% in the headline figure. Output growth quickened to a new series high while new business rose substantially, but at a slightly softer pace to that seen in May.
“The latest survey data for Qatar have shown the non-energy economy going from strength to strength. The PMI set a record high for the second month in a row, backed by robust demand and output growth," said QFC Authority chief executive Yousuf Mohamed al-Jaida.
The Qatar PMI indices are compiled from survey responses from a panel of around 450 private sector companies. The panel covers the manufacturing, construction, wholesale, retail, and services sectors, and reflects the structure of the non-energy economy according to official national accounts data.
Firms linked growth to healthy trading conditions and also cited that strong demand stemming from the upcoming FIFA World Cup.
Subsequently, Qatari non-energy companies remained confident that output would continue to expand over the next 12 months. Sentiment was the strongest for four months with wholesale and retail firms particularly optimistic.
Greater output and sustained new order growth supported another rise in headcounts in June, it said, adding the rate of growth was softer than that in May, but still solid overall and the fourth-strongest in the survey history.
Backlogs meanwhile rose substantially, suggesting capacity pressures continued, according to the survey.
Purchasing activity rose in June, with buying activity now observed over the last two years. The volume of inputs rose at the second-fastest rate on record, surpassed only by that seen in May. Stocked inputs meanwhile rose moderately and at a quicker pace than in May.
"Firms added to their workforces amid plans to further expand their businesses and capitalise on favourable trading conditions. Stockpiling efforts also suggest businesses are gearing up for a strong second half of the year," al-Jaida said.
The June data covering Qatar's financial services sector signalled another substantial increase in business activity. The rate of growth eased slightly from May’s record high but was the second-fastest since the series began in 2017.
New business inflows at financial services firms rose further in June. Growth was the second-strongest in the series, with only May recording a faster expansion over the survey history. Expectations for activity over the next 12 months remained positive, leading workforces to be expanded for the tenth month in a row.
 



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