In June, the non-oil private sector in Qatar experienced strong growth, with the country’s Purchasing Managers’ Index reaching 53.8. This growth was fueled by an increase in new orders, employment, and purchasing.
According to a recent survey conducted by Qatar Financial Center and compiled by S&P Global, it was found that the country experienced its fastest new business growth in June 2023, marking a significant improvement compared to the past 10 months.
The new business has grown, continuing the trend of growth for over three years now. In addition, QFC stated in their report that the rate of growth in June was the fastest it has been since August 2022 and significantly higher than the long-term trend.
The Purchasing Managers’ Index (PMI) in Qatar decreased slightly in June compared to the score in May, which was 55.6.
Based on the index, PMI readings above 50 indicate growth in the non-oil private sector, while readings below 50 indicate contraction.
In June, the PMI decreased to 53.8. However, overall, the second quarter had a better performance compared to the first three months of 2023, with a score of 54.6. “The growth rates for output and new business are still high and significantly above the average trend of the past six years,” stated Yousuf Mohamed Al-Jaida, the CEO of QFC Authority.
He said, “Companies are still saying that tourism is driving growth, along with competitive pricing and new marketing campaigns.” The financial services sector experienced significant growth, as indicated by its headline indices for activity and new business reaching 60 and 63.4, respectively.
According to the PMI report, the non-energy private sector is expected to remain optimistic in the next 12 months. This positive outlook is mainly due to the creation of new projects, company development plans, and marketing campaigns.
The demand for financial services has been increasing consistently for the past three months, as the finance sector continues to be one of the top-performing industries. According to Al-Jaida, companies are dealing with increasing costs, but they have still managed to lower their prices in order to attract new customers and keep their important clients.
The report also mentioned that the number of businesses in the country decreased because supply chains have improved.
The PMI report is put together by gathering survey responses from a group of approximately 450 companies in the private sector.
According to the report by QFC, it included the manufacturing, construction, wholesale, retail, and services sectors. The report is based on official national accounts data and represents the structure of the non-energy economy.