Sunday, July 14, 2024

Record improvement in non-energy private sector business operations


The latest data from the Qatar Financial Center Purchasing Managers Index survey shows a record improvement in the business activities of non-energy Qatari private sector companies in the second quarter of 2022.

The Purchasing Managers’ Index set a new record of 67.5 points in May 2022 from 63.6 points last April.

The PMI reading revealed the overall overall improvement in the business activities of non-energy Qatari private sector companies since the study began five years ago. Rates since the start of the study in April 2017, the employment index has risen at an almost record rate, and emerging market conditions have raised the level of corporate confidence in May 2022 compared to the low optimism of last April.

The growth of the production index at the highest rate in the history of the study led to a record increase in new orders, as well as the growth of tourism activities and the organization of the FIFA World Cup Qatar 2022 organization. All restrictions imposed by corona infection (Govit-19) reduce the time for delivery.

The manufacturing sector recorded the highest growth rate in the manufacturing index in May 2022, followed by the services, wholesale and retail sectors and the construction sector, respectively.

The continued growth of demand increased the pressure on the productivity of private sector companies in Qatar, as the unfinished business saw the fastest growth in the history of the study. In April 2022.

Qatari companies have sought to reduce backlog increases by increasing the number of their employees at a record rate.

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The increase in demand for production has prompted Qatari companies to intensify their procurement operations at record rates. At the same time, purchasing inventory rose at the fourth-highest rate in research history.

The level of optimism of Qatari companies has improved in May 2022 and positive expectations have been created that production levels will rise over the next twelve months. The key factors behind the progress of the confidence include the upcoming FIFA World Cup and optimism for growth. Tourism activity. The service sector is at its peak in May 2022.

In terms of prices, inflationary pressures increased again by submitting reports indicating rising prices of commodities and other production requirements. These pressures increased in the middle of the second quarter of 2022 and increased the average prices of production inputs in the past. In ten months, the inflation rate of production inputs was the highest since August 2020. In response, Qatari companies decided to raise the selling price of their goods and services for the first time in four months.

Recent PMI data indicate that Qatar’s financial services sector has recorded new developments in business operations due to an increase in new orders in May 2022.

These data show that the level of confidence of financial services firms rose to its three-month high in May 2022 as favorable demand conditions encouraged Qatari companies to increase the number of their employees.

The number of employees in financial services companies has been steadily increasing over the past nine months, and the most recent increase in the number of employees is the largest since October 2021.

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The increase in the number of employees and the increase in costs in general led to a steady but slight increase in the prices of production inputs. Nevertheless, production price inflation was high and the fifth highest in the study’s history.

Commenting on the data, the CEO of the Qatar Financial Central Authority, Mr. Youssef Mohamed Al-Zaida said, “The BMI data for May 2022 indicates unprecedented improvements in the business operations of Qatari private sector companies that are not related to energy. Production Indicators, New Orders and Purchases Shares were recorded.

He pointed out that Qatari companies have given positive expectations about the continuing improvement in demand conditions at the start of the World Cup. Is actively working to complete the work accumulated over the past year or so.

He warned that as Qatari companies indicated the timely delivery of goods and other production needs, positive signs of supply were emerging, which should increase the volume of production during the year, while inflationary pressures on prices increased again. From the revived market conditions, it decided to increase the prices of its goods and services to maintain its profit margin.

It is noteworthy that the BMIs for Qatar were compiled from the answers to a study by a group of about 450 private sector companies. The group covers many areas, including manufacturing, construction, retail and wholesale, as well as services, and reflects the structure of the non-energy economy, according to official national accounting data.

The QFC Core Purchasing Managers’ Index is a single-digit consolidated index representing the performance of non-energy private sector companies in Qatar. This indicator is calculated based on indicators of new orders, production, employment, supplier delivery dates and procured goods.

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PMI surveys now cover more than 40 key countries and regions, including the eurozone, and have become the most widely followed survey in the world, with central banks, financial markets and business decision makers looking for the ability to provide monthly indicators. Precise and unique to modern, economic styles.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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